alternative always has the possibility to be inferior to other competing alternatives. To facilitate risk-based decision making …, the minimax expected opportunity loss (EOL) rule is applied for alternative selection. Two existing risk measures as well … as EOL are compared and their implications in risk-based decision making are examined. It is shown that EOL can reflect …

Risk, in a financial sense, is defined as variance about some forecasted value. Any time a business appraiser forecasts … developing an actual risk measure (standard deviation) that may be used with discounted cash flow valuation models. …

settings where prices of risk vary with observed state variables. We identify conditions under which four-stage regression … time-varying prices of risk are pervasive, thus favoring dynamic cross-sectional asset pricing models over standard …