A short note on expected risk adjusted elasticity and consumer theory
This short note is aimed to open discussion. Asset pricing models assume capital markets are competitive, but then my questions were: Why would a diversified investor be willing to accept a supposedly lower equilibrium risk adjusted rate of return in emerging markets (like Argentina), that the one sought from a foreign investor, being both comfortable with it? The second: Do the sale of securities and finance in general benefit from, applying concepts and tools borrowed from consumer theory and particularly demand theory?