The authors show that leverage aversion changes the predictions of modern portfolio theory: Safer assets must offer … higher risk-adjusted returns than riskier assets. Consuming the high risk-adjusted returns of safer assets requires leverage …, creating an opportunity for investors with the ability to apply leverage. Risk parity portfolios exploit this opportunity by …

Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

exponential pattern of the general hyperbolic absolute risk aversion (HARA) utility function that satisfies their respective … study is the construction and development of an optimal compensation agency model for risk management, which is derived by … considering the effect of risk aversion utility on revenue. The proposed model can provide a fair and feasible approach within the …

at examining the risk perception, risk aversion and risk management strategies of maize producers in Awi zone, which is … found in the northwest part of Ethiopia. The study involved 343 respondents who produced maize under risk. Descriptive … regression model were used to process the data. The results showed that farmers have different perceptions of the endogenous risk …

Models (IAMs), which assumes no risk sharing across region, we introduce global risk sharing via a market for state … across regions. We estimate that such risk sharing scheme of climate risks could lead to welfare gains reducing the global … for considering risk sharing in IAMs, but also for potentially welfare increasing negotiations about sharing risks of …