---
title: Market Ambiguity and Risk-Return Tradeoff
url: https://www.ml-quant.com/papers/ssrn/4667242/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4667242
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4667242
featured: 2023-12-20
citations: unknown
topic: Derivatives & Volatility
---


# Market Ambiguity and Risk-Return Tradeoff

The risk-return balance in the stock market is affected by the investor's attitude towards ambiguity, with increased market volatility causing a decrease in the equity premium's slope when market optimism is high.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4667242
- Identifier: SSRN 4667242
- Released: 2023-09-21
- First featured: Quant Letter No. 30 (2023-12-20): https://www.ml-quant.com/issues/2023-12-20/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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