To compute the risk premium in the interest rate for a risky alternative that has the same expected return as a riskless alternative, it must be assumed that people are risk-neutral. Yet risk neutrality renders such computation unnecessary. A more suitable way is to discount the expected utility.
Document Type: Journal Article
Assistant Professor, Department of Forestry, University of Kentucky
Publication date: October 1, 1980
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The Journal of Forestry is the most widely circulated scholarly forestry journal in the world. In print since 1902, the Journal has received several national awards for excellence. The mission of the Journal of Forestry is to advance the profession of forestry by keeping forest management professionals informed about significant developments and ideas in the many facets of forestry: economics, education and communication, entomology and pathology, fire, forest ecology, geospatial technologies, history, international forestry, measurements, policy, recreation, silviculture, social sciences, soils and hydrology, urban and community forestry, utilization and engineering, and wildlife management. The Journal is published bimonthly: January, March, May, July, September, and November.