This study provides formal theoretical evidence for nesting of probability measures that are generated by risk aversion in probability measures that are generated by risk seeking preferences. In presence of highlighted nesting, conditional on independent parameterization of expectations...

This study develops a theoretical model that parameterizes cross-sectional differences in opportunity set risk within venture capital markets. The theoretical model shows clusters of venture capital activity can be induced by non-monotonic relations that obtain between search costs for projects...

With formal theoretical conditions as premise, this study develops a formal empirical structure which facilitates, simultaneously inferences in respect of each of rationality and efficiency of pricing of idiosyncratic risk. Using exactly the same data, the new empirical structure revolves around...

Suppose populations of economic agents that are parameterized by skewness preference. For stated agents, increasing marginal utility for wealth necessarily is facilitated by a risk premium function that only robustly is parameterized with reference to `relative safety', as opposed to `relative...

Let θ denote anterior probability of equilibrium and ((r(RS))/(r(RA))), ratio of returns to assets that strictly are preferred by risk averse (RA) or risk seeking agents (RS). There exists some range, θ⊆θ satisfying, 0θ1 in context of which each of RA and RS are parameterized by increasing...

This study arrives at a unifying risk measure for each of risk aversion and risk seeking preferences, a unifying risk measure (UrM) which explicitly embeds relative valuation of any two assets. The formal theory shows the UrM is, in relation to either of conditional volatility (CoV) or...

Suppose the self same set of assets enter a primary market in either of a monotone decreasing or monotone increasing sequence of asset risk. This study shows the errors that attend the valuations of the assets in the context of the two different orderings are non-coincident. The sequence with...