清华大学中级微观经济学讲义13课件.pptVIP

/Chapter Thirteen Risky Assets What do we do in this Chapter? We study a special case of consumer choice under uncertainty; That is, when consumer preference over uncertainty can be reduced to only two parameters: Mean and standard deviation. Mean of a Distribution A random variable (r.v.) w takes values w1,…,wS with probabilities ?1,...,?S (?1 + · · · + ?S = 1). The mean (expected value) of the distribution is the average value of the r.v.; Variance of a Distribution The distribution’s variance is the r.v.’s av. squared deviation from the mean; Variance measures the r.v.’s variation.