Yep, that’s what I said—that you can easily get additional risk by not diversifying.
And the trading fees are outside of EMH—there are certainly plenty of ways to reliably lose money in the real world, but not in the EMH world.
I said ‘uncompensated’ risk.
EMH doesn’t say anything about uncompensated risks.
To get to risk premium you need something like CAPM or APT which are a different kettle of fish.
Yep, that’s what I said—that you can easily get additional risk by not diversifying.
And the trading fees are outside of EMH—there are certainly plenty of ways to reliably lose money in the real world, but not in the EMH world.
I said ‘uncompensated’ risk.
EMH doesn’t say anything about uncompensated risks.
To get to risk premium you need something like CAPM or APT which are a different kettle of fish.