Results 211 to 220 of about 553,892 (263)
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Regret Theory and Risk Attitudes
SSRN Electronic Journal, 2015We examine risk attitudes under regret theory and derive analytical expressions for two components—the resolution and regret premiums—of the risk premium under regret theory. We posit that regret-averse decision makers are risk seeking (resp., risk averse) for low (resp., high) probabilities of gains and that feedback concerning the foregone option ...
Jeeva Somasundaram, Enrico Diecidue
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Decision Theory and Surgical Risk
Methods of Information in Medicine, 1974Reliability on the automatic prediction of the outcome in arterial reconstructive surgery was evaluated with the aid of a computer program based on decision theory. Twenty items of information were collected from 92 patients and used as predictors. Accuracy of the computerized allocation was checked by simple reclassification.
A D, Cattaneo, P E, Lucchelli, E, Rocca
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Risk and Risk Management Theory
2006Abstract This part of the book is designed to elicit the broad themes by which to understand the nature of emergencies and risk as well as responsive strategies and operational plans. The emergence of the Civil Contingencies Act 2004 should not be divorced from its context in terms of wider societal developments. The planning function in
Clive Walker, Jim Broderick
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1999
Absolute risk aversion (R A ) and relative risk aversion (R R ). u(y) is a utility function, y is income, or consumption. A characterization of utility functions with constant absolute and relative risk aversion, respectively. A1 and A2 are constants, A2 ≠ 0. Risk aversions for two special utility functions.
Knut Sydsæter, Arne Strøm, Peter Berck
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Absolute risk aversion (R A ) and relative risk aversion (R R ). u(y) is a utility function, y is income, or consumption. A characterization of utility functions with constant absolute and relative risk aversion, respectively. A1 and A2 are constants, A2 ≠ 0. Risk aversions for two special utility functions.
Knut Sydsæter, Arne Strøm, Peter Berck
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2023
Abstract This chapter explains why risk management can create value for firms. It shows that risk management creates value if a cash shortage prevents firms from investing in value-enhancing projects. An exception is if the risk factors and investment opportunities are correlated. The chapter further shows that debtholders, equityholders,
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Abstract This chapter explains why risk management can create value for firms. It shows that risk management creates value if a cash shortage prevents firms from investing in value-enhancing projects. An exception is if the risk factors and investment opportunities are correlated. The chapter further shows that debtholders, equityholders,
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Transportation Research Part F: Traffic Psychology and Behaviour, 2009
Abstract An introduction is given to our psychophysical response and valence theory of choice behaviour, since the risk-adaptation theory derives from that theory as an application. Risk-adaptation theory assumes that road users implicitly evaluate their risks by oppositely oriented, single-peaked valence functions of arousal and fear sensations as ...
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Abstract An introduction is given to our psychophysical response and valence theory of choice behaviour, since the risk-adaptation theory derives from that theory as an application. Risk-adaptation theory assumes that road users implicitly evaluate their risks by oppositely oriented, single-peaked valence functions of arousal and fear sensations as ...
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SSRN Electronic Journal, 2015
In this paper, we consider the pricing effects of noisy risk disclosure. We assume that investors are uncertain about the variance of a firm's cash flows and that the firm releases an imperfect signal regarding this variance. We show that the variance uncertainty is priced and that risk disclosure decreases the cost of capital in both single and multi ...
Mirko S. Heinle, Kevin C. Smith
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In this paper, we consider the pricing effects of noisy risk disclosure. We assume that investors are uncertain about the variance of a firm's cash flows and that the firm releases an imperfect signal regarding this variance. We show that the variance uncertainty is priced and that risk disclosure decreases the cost of capital in both single and multi ...
Mirko S. Heinle, Kevin C. Smith
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On the Theory of Risk Aversion
International Economic Review, 1970the existing theory by establishing the economic significance of the partial relative risk aversion function. Let u(t) be a utility function for wealth. The functions A(t) = -u"(t)/u'(t) and R(t) -tu"(t)/u'(t) are the Arrow-Pratt absolute and relative risk aversion functions.
Menezes, C F, Hanson, D L
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Liquidity risk theory and coherent measures of risk
Quantitative Finance, 2007We discuss liquidity risk from a pure risk-theoretical point of view in the axiomatic context of coherent measures of risk. We propose a formalism for liquidity risk that is compatible with the axioms of coherency. We emphasize the difference between ‘coherent risk measures’ (CRM) ρ(X ) defined on portfolio values X as opposed to ‘coherent portfolio ...
Carlo Acerbi, Giacomo Scandolo
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Theory of Generalized Risk Attitudes
Decision Analysis, 2015This paper develops a theory of risk attitudes that can be applied in a broad array of settings, including those in which the decision maker (DM) abides by a preference model other than the expected utility model and in which decisions are being made over multiattribute alternatives. The theory is based on (i) a set of plausible axioms in which the DM’
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