Market Risk Premium

Returns the market risk premium per country: the extra return investors demand for holding equities over a risk-free investment. It consists of the country risk premium, which compensates for the additional risk of the country itself, and the total equity risk premium, which adds the premium of a mature market. The market risk premium is a key input of the Capital Asset Pricing Model (CAPM) and with that of the cost of equity and the WACC.

The same data is available as Toolkit.get_market_risk_premium; both share one cached copy. This requires a FinancialModelingPrep API key, passed via api_key when initializing.

Also known as: equity risk premium, country risk premium, MRP.

Market Risk Premium in Python

Install the Finance Toolkit with:

pip install financetoolkit -U

Then call get_market_risk_premium as shown below.

from financetoolkit import Economics

economics = Economics(api_key="FINANCIAL_MODELING_PREP_KEY", end_date="2025-12-31")

market_risk_premium = economics.get_market_risk_premium()

market_risk_premium.loc[["United States", "Germany", "Japan", "Brazil", "India"]]

Which returns:

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