What You May Have Missed
By Kerk Phillips, For the Deseret News
Published: Monday, Oct. 1 2012 6:00 p.m. MDT
A modern investor takes a pool of money and optimally distributes these funds over a set of investment assets. Some of these assets are very safe, and have low rates of return. Others are risky, but compensate for this risk by offering higher payoffs. The decisions investors make depend on how averse to risk they are and on how high the returns of the assets are relative to their risk.
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