This book updates and advances the theory of expected utility as applied to risk analysis and financial decision making. Von Neumann and Morgenstern pioneered the use of expected utility theory in the 1940s, but most utility functions used in financial management are still relatively simplistic and assume a mean-variance world. Taking into account recent advances in the economics of risk and un…
From the Publisher: Fundamental change occurs most often in one of two ways: as a "fatal discontinuity," a sudden catastrophic event that is potentially world changing, or as a persistent, gradual trend. Global catastrophes include volcanic eruptions, viral pandemics, wars, and large-scale terrorist attacks; trends are demographic, environmental, economic, and political shifts that unfold over …
From the Publisher: Fundamental change occurs most often in one of two ways: as a "fatal discontinuity," a sudden catastrophic event that is potentially world changing, or as a persistent, gradual trend. Global catastrophes include volcanic eruptions, viral pandemics, wars, and large-scale terrorist attacks; trends are demographic, environmental, economic, and political shifts that unfold over …
From the Publisher: Fundamental change occurs most often in one of two ways: as a "fatal discontinuity," a sudden catastrophic event that is potentially world changing, or as a persistent, gradual trend. Global catastrophes include volcanic eruptions, viral pandemics, wars, and large-scale terrorist attacks; trends are demographic, environmental, economic, and political shifts that unfold over …