Two-Period Model: State-Preference Approach

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


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.


Utility Function Asset Price Hedge Fund Prospect Theory Representative Agent 
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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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