The Risk Premium — How Risk Affects Expected Returns

Colin Read
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Colin Read: SUNY College

Chapter 6 in The Fear Factor, 2009, pp 53-58 from Palgrave Macmillan

Abstract: Abstract The utility curve readily tells us something about risk. It shows us why we value economic security and why any risk to our economic security creates discomfort. We will also see why declines in income from a market meltdown can breed fear and result in even greater subsequent declines.

Keywords: Risk Aversion; Financial Market; Risk Premium; Risk Tolerance; Economic Security (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-25086-4_7

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DOI: 10.1057/9780230250864_7

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