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Capital Asset Pricing Model (CAPM) is risk-aversion.Everyone has risk-aversion. Some are comfortable with minimum risk, while others preferred the maximum risk when managing risk.In economics,

Capital Asset Pricing Model (CAPM) is risk-aversion.Everyone has risk-aversion. Some are comfortable with minimum risk, while others preferred the maximum risk when managing risk.In economics, we learn the term utility.In the context of risk-aversion, how would we like to be compensated for the level of risk we accept with our decision? In other words, what is the risk-reward relationship?

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