Risk Preference Utility Caselets

4 Pages Posted: 21 Oct 2008

See all articles by Samuel E. Bodily

Samuel E. Bodily

University of Virginia - Darden School of Business

Abstract

These three caselets provide practice using risk preference and utility, with both exponential utility (constant risk aversion) and logarithmic utility (decreasing risk aversion). The second caselet is an extension of "Integrated Siting Systems, Inc." (UVA-QA-0441). Students may use TreePlan to conduct a sensitivity analysis of risk tolerance, and can employ Solver to find optimal risk sharing. Students will learn concepts and garner insights regarding portfolio risk in making investments, how intangibles can affect evaluation of risk, and how expected utility can exploit risk sharing.

Keywords: quantitative analysis

Suggested Citation

Bodily, Samuel E., Risk Preference Utility Caselets. Darden Case No. UVA-QA-0703. Available at SSRN: https://ssrn.com/abstract=1284275

Samuel E. Bodily (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4813 (Phone)
434-293-7677 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/bodily.htm

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