ways to manage risk of which one of the most important forms is interest rate risk. In this paper we use the mean …-variance (mean-standard deviation) approach to examine a banking firm investing in risky assets and hedging opportunities. The mean …-standard deviation framework can be used because our hedging model satisfies a scale and location condition. The focus of this study is …

elaborated the cash flows andcalculated some financial indicators (under deterministic and risk conditions), as the netpresent … of risk. …

year, we elaborated the cash flows and calculated some financial indicators (under deterministic and risk conditions), as … considered as disassociated of risk. …

, we show that agents economic hedging portfolios can be obtained by an intuitively appealing, risk aversion …-weighted approximate replication of the economic risk variables using the investment opportunity set, as opposed to the unweighted hedging … demand obtained in the traditional mean-variance framework.We find that agents across a broad range of levels of risk …