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Все вопросы
- A normal good is one for which an increase in income leads to an increase in demand; so for this sort of good the income elasticity of demand is positive. #161
- We can use the … set and indifference curve apparatus developed earlier to examine the choice of how much money to invest in risky and riskless assets. #162
- The marginal rate of substitution between … and return will have to equal the slope of the budget line. This slope is known as the price of risk. #163
- The amount of … present in an asset depends to a large extent on its correlation with other assets. An asset that moves opposite the direction of other assets helps to reduce the overall risk of your portfolio. #164
- The amount of risk in an asset relative to that of the market as a whole is called the … of the asset. #165
- The fundamental equilibrium condition in asset markets is that risk adjusted returns have to be the …. #166
- Counterparty risk, which is the risk that the other side of a transaction will not pay, can also be an important risk factor. #167
- A closely related measure is the standard deviation, denoted by σw, which is the square root of the variance. #168
- Suppose that you can invest in two different assets. One of them, the risk-free asset, always pays a different rate of return, rf. This would be something like a Treasury bill that pays a different rate of interest regardless of what happens. #169
- We can call this slope the price of risk since it measures how risk and return can be traded off in making portfolio choices. #170