Some Applications in Economy for Utility Functions Involving Risk Theory
Abstract We present in the first part of the article types of utility functions that can describe the behavior of the investor and their applications to optimize portfolio. The second part of the paper refers to applications in calculating insurance premiums aggregated risk in zero utility principle.
An Introduction to Utility Theory
A gentle but reasonably rigorous introduction to utility theory. Utility functions give us a way to measure investor’s preferences for wealth and the amount of risk they are willing to undertake in the hope of attaining greater wealth. This makes it possible to develop a theory of portfolio optimization. Thus utility theory lies at the heart of modern portfolio theory. We develop the basic concepts of the theory through a series of simple examples. We discuss non-satiation, risk aversion, the principle of expected utility maximization, fair bets, certainty equivalents, portfolio optimization, coecients of risk aversion, iso-elasticity, relative risk aversion, and absolute risk aversion.
Shakespeare, Machiavelli, and Montaigne: Power and Subjectivity from Richard II to Hamlet
HISTORICISM AND THE CULTURAL PRESENT IN SHAKESPEARE STUDIES: SUBJECTIVITY IN EARLY AND LATE MODERNITY HAMLET AND THE TRAGEDY OF THE SUBJECT