that pension trustees are inherently optimistic in forming projections but such optimism increases with the degree of risk …-aversion. Further, the higher the level of risk-aversion, the more likely trustees will conform to peer group consensus and the less …

We formulate a robust theory of liquidity and risk management based on two fundamental frictions: 1) the entrepreneur … significant distortions for risk-sharing, corporate investment, and consumption. With regard to concern for ambiguity aversion …, the impacts of ambiguity on risk hedging is ambiguous due to the interactions between robustness and limited commitment …

-)variance of power plant profits. If investors are risk-averse, these differ- ences lead to divergent investment portfolios …, breaking the equivalence of price- and quantity-based policy instruments under risk-neutrality. Using the European power sector … with increasing risk aversion. …

which, compared with the risk-adjusted cost of capital, correctly signals wealth creation. For choosing between two mutually … exclusive projects, we derive an incremental AROI and an incremental risk-adjusted cost of capital, by means of which two … unequal-risk projects can be correctly compared. Iterating the incremental procedure, we show that the AROI approach correctly …