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Two-Period Model: State-Preference Approach

  • Thorsten Hens
  • Marc Oliver Rieger
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

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.

Keywords

Utility Function Asset Price Hedge Fund Prospect Theory Representative Agent 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2016

Authors and Affiliations

  • Thorsten Hens
    • 1
  • Marc Oliver Rieger
    • 2
  1. 1.University of ZurichZurichSwitzerland
  2. 2.University of TrierTrierGermany

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