Empirical Check of the Return - Risk Tandem

• Main Authors: Costică Vlad, Adriana Cristina Pavel Surlaru
• Format: Article
• Language: English
• Published: Ovidius University Press 2020-01-01
• Series: Ovidius University Annals: Economic Sciences Series
• Subjects: efficient market; projected return; risk-seeker; risk-adverse; utility function
• Online Access: http://stec.univ-ovidius.ro/html/anale/RO/2020/Section%205/32.pdf

his work is a part of a previously started cycle, published in this magazine and which is focussed onthe diverse analysis of the tandem risk-profitability. The purpose of the approaching this subject is obviously given by the economic and social realities of the beginning of the new millennium: local crises, financial crisis and currently the medical crisis with severe econimic effects. This paper brings to the fore a simplified mathematic model, that of hope for wealth and the analysis of the cosequences determined by the resulting conclusions. Simplification is determined by the impossibility of quantifying the multitude of factors that influence the development of an economic act, by the difficulties of calculations, but also by the subjectivism of the investor. However, for the development of the investor’s reasoning in the analysis of reality, the model makes an important contribution.