and labor. However, a fourth factor is also critical – enterprise, or risk-taking, which is typically rewarded with profit …. This reward for risk represents a different form of income than is usually recognized in economic theory (i.e., rent, wages … theoretical arguments of J.B. Clark on the definitions of profit and of the entrepreneur, and the roles of risk and insurance …

extrema events risk. Based on the newly proposed riskiness index by Aumann and Serrano (2008), we construct the PROFIT Index … complete order for all risk avers investors. We present a closed-form solution to the PROFIT Index, as a function of the return … interest. Kahneman and Tversky in 1979 suggested a more accurate description of preferences compared to expected utility theory …

Profitability and risk are very important to determine the financial condition and performance of a firm. Again … profitability and risk have same direction; in order to have greater profitability, we need to take greater risk. But in practice a … firm must accomplish a minimum risk to achieve maximum profitability. This paper makes an attempt to provide an insight …

profit risk constraint. We develop a model with a value-at-risk constraint and propose a data-driven approximation to the … approximate the expected profit and the profit risk constraint. Afterward, we show that the data-driven risk-averse newsvendor … average realized profit may benefit from a stronger risk aversion. It further reveals that under data-driven decision making …