7. Rational Decisions Under Risk

  1. T. W. Epps

Published Online: 23 MAR 2009

DOI: 10.1002/9780470455289.ch7

Quantitative Finance: Its Development, Mathematical Foundations, and Current Scope

Quantitative Finance: Its Development, Mathematical Foundations, and Current Scope

How to Cite

Epps, T. W. (2009) Rational Decisions Under Risk, in Quantitative Finance: Its Development, Mathematical Foundations, and Current Scope, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9780470455289.ch7

Publication History

  1. Published Online: 23 MAR 2009
  2. Published Print: 2 MAR 2009

ISBN Information

Print ISBN: 9780470431993

Online ISBN: 9780470455289

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Keywords:

  • rational decisions;
  • risks;
  • axioms;
  • expected-utility (EU) theorem;
  • Markowitz investor rational

Summary

This chapter contains sections titled:

  • The Setting and the Axioms

  • The Expected-Utility (EU) Theorem

  • Applying EU Theory

  • Is the Markowitz Investor Rational?

  • Exercises

  • Empirical Project 3