riskless
2.The elimination of riskless profit opportunities in the futures market is referred to as arbitrage.
3.But there is no riskless asset in reality, so zero beta CAPM may be a better model. Thus the test is more complicated, because the hypothesis to be tested is nonlinear.
4.CAPM is the most frequently used model to estimate hurdle rates. In order to apply this model,we need to know the value of riskless rate,market risk premium and project beta.
5.This paper analyzes the frontiers of efficient mean-variance portfolio beginningwith minimum-variance portfolio. Mathematical equations of the efficient portfolio of Wg, Wd, Wtand W*, as well as portfolio selection with a riskless assed have been put out.
6.Risk premium : The additional return an investor expects from holding a risky asset rather than a riskless one ? in essence the difference between the total expected return on an investment and the appropriate estimated risk-free return.
7.This paper presents a constant elasticity of variance (CEV) model for defined pension funds management, derives the Bellman equation and finds the solution to the problem. The purpose of this paper is to find an optimal asset allocation between a risky asset and a riskless asset and the least contribution policy.
