In this note we analyze the hedging property of an optimal portfolio with one risk-free asset and two risky assets. We … sufficient to set the relative investments in the two risky assets of the portfolio for all concave utility functions. …

As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many … contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …

We create an analytical structure that reveals the long-run risk-return relationship for nonlinear continuous … eigenfunction term. The eigenvalue encodes the risk adjustment, the martingale alters the probability measure to capture long … components of cash flows induce changes in the corresponding eigenvalues and eigenfunctions, we reveal a long-run risk …

large numbers. Perceived risk judgments showed only low correlations with standard deviation estimates, but were instead …

As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many … contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …

The economic theory of decision making under risk has seen remarkable advances over the 50 years since Pratt’s (1964 …) characterization of risk aversion under expected utility. We review developments in three key areas to which Louis Eeckhoudt has made … significant contributions: (1) increases in risk and risk taking; (2) self-protection and risk aversion; and (3) higher (and lower …