Risk Aversion and the Capital Asset Pricing Theorem - Financial Theory - John Geanakoplos - Lecture 22 of 26 - Video-lecture

Video-lecture, Financial Theory

Description: Until now we have ignored risk aversion. The Bernoulli brothers were the first to suggest a tractable way of representing risk aversion. They pointed out that an explanation of the St. Petersburg paradox might be that people care about expected utility instead of expected income, where utility is some concave function, such as the logarithm.
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University: Yale University (CT)
Address: Economics