These variations greatly help in explaining the volatility of the risky return.
Normally, for example, it would be risky for a songbird to shut its eyes or block off its ears.
However, under the assumption of homogeneous beliefs about the covariance matrix of future payoffs, short-sale constraints will only increase risky asset prices.
One source of difficulty is inherent in any single case study : conclusions on such a basis, whether positive or negative, are always risky.
It is fair to require individuals who engage in certain risky actions that result in costly medical needs to pay higher premiums or taxes.
Training was costly, time-consuming and inherently risky, since a new skill could quickly become obsolete or fail to attract sufficient work to merit the investment.
Combined with the assumed absence of risky assets in the life annuity, a consequence is that consumption after annuitization is level.
To the question of how risky is to evade taxes in this country, 67% said it is too risky, and for 32% is somewhat risky.
