or that "idealized uncertainty" exists?
2006-09-22 15:33:08 · 6 answers · asked by katrina_ponti 6 in Business & Finance ➔ Investing
There really isn't much significance in asset pricing. It is a simplifying assumption justified by the fact that prices are set by the marginal investor -- therefore you need only take the preferences and expectations of the marginal investor into account.
It isn't completely realistic in a world where some investors have private information -- but is a reasonable starting point.
2006-09-22 16:44:37 · answer #1 · answered by Ranto 7 · 0⤊ 1⤋
With risks come rewards. The higher the risk one takes the greater the reward one can earn. Investors are all seeking maximum rewards. Uncertainty is the risk.
2006-09-23 10:46:27 · answer #2 · answered by LORD Z 7 · 0⤊ 1⤋
Stable stock price.
Most banks will only allow a 50% current value maximum for securing credit associated with liquidable holdings.
2006-09-22 22:51:22 · answer #3 · answered by ★Greed★ 7 · 0⤊ 1⤋
That would assume nobody is shorting somebody else's money for personal ADIY.
2006-09-22 22:35:17 · answer #4 · answered by Stan the answer Man 3 · 0⤊ 1⤋
It's hard to pay attention to the question with your pic... and I mean that as a compliment!
2006-09-22 22:40:35 · answer #5 · answered by Martin523 4 · 0⤊ 2⤋
I like your little picture you have there.... and I have no idea how to respond to your question... I am lost!!!!!!!!
2006-09-22 22:35:21 · answer #6 · answered by dfksaturn2003 3 · 0⤊ 2⤋