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

uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm … always chooses its optimal debt-equity ratio to minimize the weighted average cost of capital, irrespective of the risk …. When the background risk is either additive or multiplicative, we provide reasonable restrictions on the firm's preferences …

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 … the farmer’s optimal commodity futures market position, i.e., a cross-hedge strategy, is actually an over-hedge, a full …-hedge, or an under-hedge strategy, depending on whether the two prices are strongly positively correlated, uncorrelated, or …

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