Risk Costs And The Choice Of Market Return Index
AbstractSix measures of returns are used to estimate the most "Â“appropriate"Â” market index for southeast Kansas farms. Results suggest that localized indices are more appropriate than state indices for use as the market index. The appropriate index was used to estimate systematic and nonsystematic risk and risk costs for farm planning. Estimated risks depend on the choice of market index, whereas risk costs depend on the index choice and the risk aversion are considered. More risk-averse specialized farmers are not completely compensated for risk.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 17 (1992)
Issue (Month): 01 (July)
Farm Management; Risk and Uncertainty;
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