Title | QMplus - The Online Learning Environment of Queen Mary University of London |
---|---|
Course | Primary Markets and Securities |
Institution | Queen Mary University of London |
Pages | 2 |
File Size | 131.4 KB |
File Type | |
Total Downloads | 33 |
Total Views | 132 |
The degree to which investors are willing to commit funds to stocks depends on their risk aversion. Investors are risk averse in the sense that, if the risk premium were zero, they would not invest any money in stocks. In theory, there must always be a positive risk premium on stocks in order to in...
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