Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
when we later discuss the concept of risk for an investor, we will recognize that for many, more risk is worse than less risk, all else being equal. In that analysis, we shall model the willingness of the investor to trade off between increased investment returns and increased certainty, which is the absence of risk.
If you want to change selection, open document below and click on "Move attachment"

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
non-satiation . Clearly, for some things, more is worse, such as air pollution or trash. In those cases, the good is then the removal of that bad, so we can usually reframe our model to accommodate the non-satiation assumption. In particular, <span>when we later discuss the concept of risk for an investor, we will recognize that for many, more risk is worse than less risk, all else being equal. In that analysis, we shall model the willingness of the investor to trade off between increased investment returns and increased certainty, which is the absence of risk. EXAMPLE 1 Axioms Concerning Preferences Helen Smith enjoys, among other things, eating sausages. She also enjoys reading Marcel Proust. Smith is co


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details


Discussion

Do you want to join discussion? Click here to log in or create user.