Identifying the Risk-return Spectrum of the FSU Oil Economies

摘要

This paper quantifies the risk-return spectrum of the FSU' oil economies, which are of high potential as China's major crude oil-importing sources, and explores the influence of introducing the relative risk weights on the changes of the risk-return spectrum. The results show that when the risk preference of decision-makers is considered, the risk-return spectrum of the FSU turns into the low-risk with high-return from the high-risk with high-return, which proves that increasing imports from the FSU is an effective way to balance out the risk from the high import dependence on the ME, and to promote the China's energy import security.