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LECTURE 2 : UTILITY AND RISK AVERSION

LECTURE 2 : UTILITY AND RISK AVERSION. (Asset Pricing and Portfolio Theory). Contents. Introduction to utility theory Relative and absolute risk aversion Different forms of utility functions Empirical evidence How useful are the general findings ? Equity premium puzzle

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Utility u w - PowerPoint PPT Presentation

LECTURE 2 : UTILITY AND RISK AVERSION