What is the role of expectations and the risk premium in the asset market or portfolio balance

Question:

What is the role of expectations and the risk premium in the asset market or portfolio balance approach? Why was there no risk premium in the monetary approach?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

International Economics

ISBN: 978-1118955765

12th edition

Authors: Dominick Salvatore

Question Posted: