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Reinvest Wisely So Your Family Will Love You: Enigmatic Fine Art Returns, Messi & Sports Financing

Pirates of Finance

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The Risk Free Rate of Return

The risk premium exists because you need to be compensated for taking excess risk above risk for your rate. If it's undiversifiable, you can't get rid of it. So why would you accept the risk free rate of return for something that now you have risk? It doesn't say theoretically if every player in the market hedge the risk.

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