Which concept is the description of "a decision maker would considers a risky investment only if it provides compensation for risk through a risky premium"about?
A: the time value of money
B: risk aversion
C: EMH
D: rational investors
A: the time value of money
B: risk aversion
C: EMH
D: rational investors
举一反三
- The difference between risk averse and risk neutral investors is that risk neutral investors only consider expected rate of return while risk averse investors needs compensation for risk
- Individual's<br/>risk aversion degree decides specific allocation between a risky<br/>portfolio and a risk-free asset. ( )
- Suppose that the risk-free rate is 5%, risky asset weight (the y) is 50% and market risk premium on risky asset is 5%, what is the expected portfolio return of our portfolio? Write in percentages with the % symbol.______
- Suppose that the risk-free rate is 5%, risky asset weight (the y) is 50% and market risk premium on risky asset is 5%, what is the expected portfolio return of our portfolio? Write in percentages with the % symbol.<br/>______
- Which of the following risks can be diversified through portfolio investment? _____. A: Interest rate risk B: Inflation risk C: Market risk D: Default risk