Rational: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Irrational.) |
imported>Doug Williamson (Add link.) |
||
| Line 14: | Line 14: | ||
*[[Risk]] | *[[Risk]] | ||
*[[Risk averse]] | *[[Risk averse]] | ||
*[[Risk premium]] | |||
[[Category:Corporate_financial_management]] | [[Category:Corporate_financial_management]] | ||
Latest revision as of 13:27, 9 June 2020
Economics.
Classical economics assumes that all market participants are profit-maximising and risk averse.
This combination of preferences is known as 'rational' in the efficient market hypothesis.
