Explain what it means for all assets to have the same reward-to-risk ratio. How can you increase your return if this holds true?
Why would we expect that all assets have the same reward-to-risk ratio in liquid, well-functioning markets?

Question

Explain what it means for all assets to have the same reward-to-risk ratio. How can you increase your return if this holds true?
 Why would we expect that all assets have the same reward-to-risk ratio in liquid, well-functioning markets?

Quizplus · Accepted Answer

The Answer of Explain what it means for all assets to have the same reward-to-risk ratio. How can you increase your return if this holds true?
 Why would we expect that all assets have the same reward-to-risk ratio in liquid, well-functioning markets?

Explain What It Means for All Assets to Have the Same