A wheat farmer from Oklahoma would most likely hedge their price risk by: selling wheat futures It is not possible to hedge price risk buying wheat futures outsourcing production O O Increasing their prices When looking at the historical record of returns from 1926 2016, we find that on average there is a positive risk premium for all asset casses analyzed. This observation provides support to the notion that real returns are large finance is difficult riskless rates there is a reward for bearing risk there is a risk-return tradeoff