Topic 8: Portfolio Investment and Risk Flashcards by Tomas Cokis

Q

What is the risk premium?

A

ρ_Y = Y₀ - Y_C

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Q

Define the Arrow Pratt Coefficient

A

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Q

What is the coefficient of variation?

A

σ_Y = sd(Y)/Y₀

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Q

How can we solve for the risk premium?

A

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