Abstract
The utility curve readily tells us something about risk. It shows us why we value economic security and why any risk to our economic security creates discomfort. We will also see why declines in income from a market meltdown can breed fear and result in even greater subsequent declines.
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© 2009 Colin Read
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Read, C. (2009). The Risk Premium — How Risk Affects Expected Returns. In: The Fear Factor. Palgrave Macmillan, London. https://doi.org/10.1057/9780230250864_7
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DOI: https://doi.org/10.1057/9780230250864_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31007-4
Online ISBN: 978-0-230-25086-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)