The article explores how different types of risks affect asset prices in an economy where people face uncertain situations. When individual risks change during economic ups and downs, it can impact how much people are willing to pay for assets. By using a specific type of economic model and considering different preferences, the researchers found that when individual risks go down during bad times, asset prices go up. This change in risk also affects how much people are willing to save or spend over time. By adjusting certain preferences, it is possible to increase asset prices while keeping the overall economic dynamics stable.