PPT-Real options and risk aversion

Cameron MacKenzie Assistant Professor IMSE February 19 2021 Public or market risks Based on option theory in financing Assumption that all risk can be mitigated by hedging 2 Example from Jo Min. This paper provides a theorem showing that expectedutility theory is an utterly implausible explanation for apprecia ble risk aversion over modest stakes Within expectedutility theory for any concave utility function even very little risk aversion o Sec ond the UE may have arisen in the original demonstration of this effect because participants misunderstood the in structions Third the UE may be due to direct risk aversion that is actual distaste for uncertainty In Experiment 1 the UE was obser Charles . Noussair. , Stefan . Trautmann. , . Gijs. van de . Kuilen. , and Nathanael . Vellekoop. Tilburg University. Risk and Choice: Conference in honor of Louis . Eeckhoudt. Toulouse, 2012 . W. e . SeaTac Doubletree Hotel – August 3, 2011. . About Impact Washington. The Washington State NIST Manufacturing Extension Partnership center . A not-for-profit helping Washington manufacturers become more globally competitive. . Volatility. Volatility in returns is a classic measure of . risk. Perfect Market. More systematic risk leads to more . return. But Volatility is Costly. External . financing. Project funding. Distress. October 30, 2012. POSTECH . Strategic Management of Information and Technology . Laboratory. (POSMIT: http. ://. posmit.postech.ac.kr). Dept. of Industrial & Management Engineering. POSTECH. Discussion Questions. Known, Unknown And Unknowable (. KuU. ). Presenter : . Treshani. . Perera. Treshani. . Perera. & David Higgins. RMIT. University, Australia. 2. Outline. What is Risk?. Risk in a 3fold direction: Known, Unknown and Unknowable (. Psychology 466: Judgment & Decision Making . Instructor: John Miyamoto. 11/16/2017: Lecture 08-2. Note: This . Powerpoint. presentation . may contain . macros that I wrote to help me create the slides. . Development of an Individual Measure of Loss Aversion John W. Payne (Duke) Suzanne B. Shu (UCLA and NBER) Elizabeth C. Webb (Columbia)* Namika Sagara (Duke) Overview Development of a model-free individual-level measure of loss aversion Economic Behavior & Organization Manuscript Draft Manuscript Number: JEBO - D - 18 - 00695 Title: Risk and ambiguity aversion behaviour in index - based insurance uptake decisions: experimental evide Dan Ariely is Luis Alvarez Renta Professor of Management ScienceMassachusetts Institute of Technology e-mail arielymitedu JoelHuber is Professor of Marketing Fuqua School of Business Duke Univer-sity Climate . change. │. Interdisciplinary. research. Climate . change. │. Behavioral. economics. "The . inclusion of research from . behavioral. economics and science is most certainly warranted and is . Cameron MacKenzie. , Assistant Professor IMSE. April 26, 2021. Public or market risks. Based on option theory in financing. Assumption that all risk can be mitigated by hedging. Use risk-free interest rate . Direct real estate value at Risk. 1. Charles-Olivier AMEDEE-MANESME, . Thema. U. . Cergy-Pontoise. Fabrice. BARTHELEMY, . Thema. U. . Cergy-Pontoise. ERES 2012 - Edinburgh. Motivation?. Calculation rare in real estate..