We provide theoretical and empirical arguments in favor of a diminishing marginal premium for market risk. In capital market equilibrium with binding portfolio restrictions, investors with different risk aversion levels generally hold different sets of risky securities. Whereas the traditional linear relation breaks down, equilibrium can be described or approximated by a concave relation between expected return and market beta, and a concave relationship between market alpha and market beta. An empirical analysis of U.S. stock market data confirms the existence of a significant concave cross-sectional relation between average return and estimated market beta. We estimate that the market risk premium is at least four to six percent per annum, substantially above traditional estimates. A practical implication for active portfolio managers is that the alpha of ``betting against beta'' strategies seems dominated by the medium-minus-high-beta spread rather than the low-minus-medium-beta spread. The success of such strategies thus largely depends on underweighting or short selling high-beta stocks.

This research aims to examine the pertinent attributes of supply chain networks that impact upstream supply chain financing, while also creating a model that elucidates these attributes from the perspective of buying companies during the implementation of supply chain financing. To achieve this, the study employs a comprehensive review of existing literature on supply chain financing, yielding insights into the relevant characteristics of supply chain networks that are influential in facilitating financing for upstream suppliers. Moreover, the study provides an extensive comprehension of these characteristics and their interdependencies, accompanied by exemplary approaches to specific configurations of these characteristics. The findings of this study have significant implications for buying companies, as they offer a foundation for the development of more effective approaches to supplier financing at lower levels of the supply chain. By incorporating these identified characteristics, buying companies can enhance overall supply chain resilience and efficiency. Consequently, the study fills a critical knowledge gap by shedding light on the domain of supplier financing at lower levels of the supply chain, thereby contributing to a more comprehensive understanding of supply chain financing dynamics.