Utility should be a function consisting of two autonomous sections both positive and negative, that needs to be configurable to the individuals it is designed to represent. This is achieved through the target by which individuals measure their investments against as well as their individual...

The equity premium puzzle has confounded economists since its presentation in 1985. Numerous solutions have been offered that challenge the risk aversion coefficient or α. These solutions have been discredited due to “implausibly large” levels of risk aversion. However, when examining the...