Traditional decision theory describes human behavior and human preferences in terms of utility functions. In the last decades, it was shown that in many economic situations, a reasonable description of the actual decisions can be found if we use a different approach -- of spectral risk measures....

In traditional econometrics, the quality of an individual investment -- and of the investment portfolio -- is characterized by its expected return and its risk (variance). For an individual investment or portfolio, we can estimate the future expected return and a future risk by tracing the...