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Two-Period Model: State-Preference Approach

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Abstract

In the last chapter we have assumed that investors base their decisions on the mean-variance approach. This helped us to develop a model for pricing assets on a financial market, the CAPM. In this chapter we want to generalize this model in that we relax the assumptions on the preferences of the investors.

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Author information

Authors and Affiliations

  1. ISB, University of Zurich, Plattenstrasse 32, 8032, Zurich, Switzerland

    Professor Dr. Thorsten Hens

  2. Fachbereich IV, University of Trier, Universitätsring 15, 54286, Trier, Germany

    Prof. Dr. Marc Oliver Rieger

Authors
  1. Professor Dr. Thorsten Hens
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  2. Prof. Dr. Marc Oliver Rieger
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Correspondence to Thorsten Hens .

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© 2007 Springer-Verlag Berlin Heidelberg

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Hens, T., Rieger, M.O. (2007). Two-Period Model: State-Preference Approach. In: Financial Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-36148-0_4

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  • DOI: https://doi.org/10.1007/978-3-540-36148-0_4

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-36146-6

  • Online ISBN: 978-3-540-36148-0

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