# 上述 平 均 效

This preview shows page 7 - 9 out of 37 pages. A risk-seeker is described as having an increasing marginal utility of wealth – the line is convex. They will pay to gain uncertainty. 风险寻 者被 描述 多的 财富 际效 - 线 的。 们会 付出 价来 获得 不确定性 Risk aversion and loss aversion in summary Risk Aversion Humans generally do not like uncertainty and will avoid or reduce the amount they are willing to pay to reduce uncertainty. 通常不 喜欢 不确定性，会 避免 或减少 们为减少不确定 性而 意支 金额 Loss Aversion Humans will dislike to an even greater extent an uncertainty which may cause a loss relative to their current reference point. eg. lost opportunities are disliked less than actual financial losses. 将在更大程度 喜欢 可能导致 对于 参考 失的不确定性。 例如。 会不如实 的经济 失。 Risk Preference An individual’s risk and loss aversion. 个人的风险和 厌恶 Basic maths of probabilities (dependency) Probability = Number of wanted outcomes / Number of possible outcomes - E.g. Probability of rolling a die and getting a “6” = 1/6 Two events are independent when the outcome of the first event does not influence the outcome of the second event . - P(A and B) = P(A) x P(B) e.g. rolling 2 sixes = P(6 and 6)=1/6 x 1/6 Two events are dependent when the outcome of the first event influences the outcome of the second event . The probability of two dependent events is the product of the probability of A and the probability of B AFTER A occurs.  #### You've reached the end of your free preview.

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• Spring '18
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