微观经济学及财务知识分析范文(ppt 135页).ppt

Chapter 1 Chapter 5 Choice Under Uncertainty Topics to be Discussed Describing Risk Preferences Toward Risk Reducing Risk The Demand for Risky Assets Introduction Choice with certainty is reasonably straightforward. How do we choose when certain variables such as income and prices are uncertain (i.e. making choices with risk)? Describing Risk To measure risk we must know: 1) All of the possible outcomes. 2) The likelihood that each outcome will occur (its probability). Describing Risk Interpreting Probability The likelihood that a given outcome will occur Describing Risk Interpreting Prob