The value at risk measure attempts to summarize in a single number market value risk of a portfolio of financial assets …

always chooses its optimal debt-equity ratio to minimize the weighted average cost of capital, irrespective of the risk … uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm … on its optimal debt-equity ratio, thereby rendering the interdependence of the real and financial decisions of the firm …

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

This note studies the risk-management decisions of a risk-averse farmer. The farmer faces multiple sources of price …

general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results …