Valuing Bets and Hedges : Implications for the Construct of Risk Preference

Risk attitudes implied by valuations of risk-increasing assets depart markedly from those implied by valuations of risk-reducing assets. For instance, many are unwilling to pay the expected value for a risky asset or for its perfect hedge. Although nearly every theory of risk preference (and logic) demands a negative correlation between valuations of bets and hedges, we observe positive correlations. This inconsistency is difficult to expunge

MoreLess

Year of publication:	2019
Authors:	Frederick, Shane
Other Persons:	Levis, Amanda (contributor) ; Malliaris, Steven G. (contributor) ; Meyer, Andrew (contributor)
Publisher:	[2019]: [S.l.] : SSRN
Subject:	Risikopräferenz \| Risk attitude \| Hedging \| Theorie \| Theory \| Glücksspiel \| Gambling \| Risikomanagement \| Risk management

Extent:	1 Online-Ressource (8 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Judgment and Decision Making, Vol. 13, No. 6, November 2018, pp. 501–508 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 30, 2018 erstellt
Classification:	G11 - Portfolio Choice ; g40
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012864420