It is -well known from economic theory that under market clearing conditions the investors holding a risky asset need to be compensated according to the amount of risk they take in order to eliminate arbitrage opportunities. This equally translates to the price of a real asset by considering discounting their expected future cash flows at a rate higher than the return promised by a more secure investment in each period. The appropriate rate is called the risk-adjusted discount rate, and because it is market-determined it can well differ from any 'target' rate that an investor is willing to pursue on a given investment.
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