Monday, 22 November 2010

Falkenstein on Risk-Return-Alpha

My argument is that risk premiums do not exist within almost all asset classes, therefore, it is a reasonable approximation to say they do not exist in general. This does not mean you should not take risk, merely, that you should take risk for other reasons.

Taking risk: try something, fail, move on!

Bad idea to think that: "I am going to be compenstated merely for taking risk!"

A little bit confused.

No comments: