Define risk aversion and explain the role the risk premium plays in the risk-return tradeoff.
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Define risk aversion and explain the role the risk premium plays in the risk-return tradeoff.
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Risk aversion refers to an individuals or investors preference for avoiding or minimizing risk It is the tendency to choose investments or decisions with lower levels of uncertainty or variability eve...View the full answer
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Related Book For 
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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