Concepts of utility and optimizing expected incremental utility are ubiquitous in economics, and also in the academic literature of gambling. However, we have been surprised how little these concepts have impacted real-world finance, despite in many cases providing tools which are both helpful...

Although the Fama and French's three factor model is now the most popular replacement for CAPM in corporate finance and investment management, the exclusion of financial firms can be questioned on both theoretical and empirical grounds. Financial firms are around 19 percent of the value of the...