ambiguity in the risk that a drug is ineffective and the risk that a drug is unsafe. These deviations from ambiguity neutrality …

, and predictability of stock returns. The key to our results is that the agent's risk-aversion changes over time as a …

with individual VaR delivers an optimal wealth assignment between risky and risk-free assets …

Analysis of decision making under risk has been dominated by expected utility theory, which generally accounts for … people's actions. Presents a critique of expected utility theory as a descriptive model of decision making under risk, and … argues that common forms of utility theory are not adequate, and proposes an alternative theory of choice under risk called …

Prospect Theory (PT) and Constant Relative Risk Aversion (CRRA) have clear-cut implications for the optimal asset … allocation between stocks and the risk-free asset as a function of the investment horizon. While CRRA preferences imply that the …

is evidence on which dimension of intertemporal risk – the risk or the time – is evaluated first. Though under discounted …. We find more support for the notion that the risk dimension is evaluated first …

, and predictability of stock returns. The key to our results is that the agent's risk-aversion changes over time as a …