PDA

View Full Version : Suppose an investor could get a 3% rate of return with no risk, but higher returns re


Cbryner
Sep 30, 2016, 02:30 PM
Suppose an investor could get a 3% rate of return with no risk, but higher returns require more risk at a constant rate. Draw an investor opportunity schedule and show where a person might maximize utility. Does a person accept some risk?

smoothy
Sep 30, 2016, 02:55 PM
Obviously homework... because this situation doesn't exist today.

What do you think and explain?

ma0641
Sep 30, 2016, 06:35 PM
Does a person accept some risk?


You accept risk by living, only dead people have no risk.