FNCE30001 Investments Semester 2‚ 2011 Introduction and L1: Risk Aversion and Capital Allocation Subject Administration Issues See the Study Guide on LMS for details! Lectures given in two streams: Wednesdays‚ 12:00pm - 2:00pm (The Spot‚ Basement Theatre) Fridays‚ 10:00am - 12:00pm (The Spot‚ Basement Theatre) First five lectures (on stocks) given by Dr Joachim Inkmann Consultation time: Fridays‚ 1:00pm – 3:00pm Remaining six lectures (on bonds) given by Professor Rob Brown Consultation
Premium Risk aversion Investment Utility
from the data). Theoretically‚ this in turn requires that investors dislike risk or that they are risk averse. For intuition’s sake‚ we will review some of the relevant concepts. Definition: Let [pic]be a preference relation with an expected utility representation. [pic] is said to exhibit or display risk aversion if for any simple gamble [pic] with expected value g‚ denoted [pic]‚ the relation weakly prefers the fixed value g to the simple gamble → g [pic] [pic] [pic]g‚ [pic]. The weak preference
Premium Risk aversion Utility
evaluation. Respondents may feel confused so they might have difficulties in comparisons. Also‚ if the respondents feel too complicated‚ they might lost their impatient in answering the question. It may lead to the result cannot be accuracy. 2. Utility assessment: Using the sheet that you created in Question 1‚
Premium Hotel Preference Hotels
in descending order of preference using (≻) to denote strict preference and (∼) to denote indifference between adjacent pairs as‚ e.g.‚ in the form A ≻ B ≻ C ∼ D ≻ E. 2. Consider an economic agent who has preferences that are represented by the utility function: u(x‚ y) = √ xy a. For each pair of bundles A and B‚ indicate whether A ≻ B‚ A ≺ B‚ or A ∼ B. A B (4‚ 7) (7‚ 10) (8‚ 4) (2‚ 8) (7‚ 3) (6‚ 9) (10‚ 10) (9‚ 6) b. Using the bundles in (a)‚ make a list that orders the bundles according to
Premium Utility Economics Preference
Questions 1. Utility: A. is synonymous with usefulness. B. is want-satisfying power. C. is easy to quantify. D. rarely varies from person to person. 2. Marginal utility can be: A. positive‚ but not negative. B. positive or negative‚ but not zero. C. positive‚ negative‚ or zero. D. decreasing‚ but not negative. 4. The ability of a good or service to satisfy wants is called: A. utility maximization. B. opportunity cost. C. revenue potential. D. utility. 9. The above
Premium Consumer theory Supply and demand Utility
we say that it provides: A. utility maximization. B. opportunity cost. C. revenue potential. D. utility. 2. Refer to the above data. The value for Y is: A. 25. B. 30. C. 40. D. 45. 3. Refer to the above data. The value for X is: A. 15. B. 5. C. 55. D. 10. 4. Refer to the above data. The value for W is: A. 15. B. 20. C. 25. D. 30. 5. Refer to the above data. The value for Z is: A. -5. B. +5. C. -10. D. zero. 6. A product has utility if it: A. takes more and more
Premium Consumer theory Utility Economics
TIGER AIRWAYS V/S SINGAPORE AIRLINES Tiger Airways and Singapore airlines are two leading airlines in the Singapore region and I would be analyzing the market strategies applied by these to attract the customers. The two parameter to be compared will be 1) Cost Vs Luxury C IC 1 IC 2 C O O S S T T ’ BB’>AA’ A’ A A BB’<AA’ A’
Premium Utility Economics Preference
) to denote strict preference and (∼) to denote indifference between adjacent pairs. In other words‚ use the form: A B C D E Answer: D E A∼B C‚ or D E B∼A C. 10 2 2. Consider an economic agent who has preferences that are represented by the utility function: u(x‚ y) = √ xy (a) for each pair of bundles A and B‚ indicate whether A B ‚ A B‚ or A ∼ B (but of course change the letters according to the bundles you are comparing). A B A(4‚7) B(7‚10) C(8‚4) D(2‚8) E(7‚3) F(6‚9) G(10‚10) H(9‚6)
Premium Utility Economics Preference
|Track 1 – Brand Image and other factors in consumer purchase behaviour | |Mrs. M. Jaasmine Begum |Mrs. S .Firdouse Jahan | |M.F.C.‚ M.Phil.‚(M.B.A.) |M.Com‚ M.Phil.‚ M.B.A.‚ PGDCA‚ B.Ed.‚ (Phd) | |Assistant Professor |HOD
Premium Sampling Marketing Sample
People make decision all the time to choose the best option in considering the utility and value that can get the most. Choice is like a gamble game that can generate several outcomes with different probability. It derives many of its hypotheses analysis of responses to money and to probability. However‚ people normally will not think the outcome in terms of total wealth‚ but rather than gain and losses and neutral outcomes. Many people prefer to choose the sure thing over the gamble even the gamble
Premium Utility Risk Decision theory