and inflation risk. Both sources of uncertainty make it difficult to stabilize consumption over time. However, investors …Our study examines the behavior of a risk-averse investor who faces two sources of uncertainty: a random asset price … can enter risk-sharing markets, such as futures markets, to manage these risks. We develop a dynamic risk management model …

risk (VaR) into the firm-theoretical model of a banking firm facing the risk of asset return. Given the necessity to …