Exchange, taking into account the investor’s propensity to risk. Design/methodology/approach - Investment portfolios consisting … companies in the entire portfolio were determined, maximizing portfolio’s expected (square) utility function, and then the … obtained structures were compared between investors with various levels of risk propensity. Using Hellwig’s taxonomic …

price risk. We model these tradeoffs explicitly in this paper and compare these two plans in a utility-based framework. Our … beneficiary: a defined benefit (DB) and a defined contribution (DC) plan. While salary risk is the main common risk factor in DB … of risk aversion, which is inconsistent with the existing literature. …