James Chen, CMT is an expert trader, investment adviser, and global market strategist. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, ...
This column explains why investment practice diverges from his theory. Let’s begin with Samuelson’s logic. His assertion is founded on the mathematical truth that while the annualized rate of return ...
This paper begins by observing that any reflexive binary (preference) relation (over risky prospects) that satisfies the independence axiom admits a form of expected utility representation. We refer ...
This is a preview. Log in through your library . Abstract Using axioms no stronger than those for the Neumann-Morgenstern expected utility hypothesis, with the recognition of finite sensibility, it is ...
Decision theory provides a structured framework for analysing how individuals and institutions make choices amidst uncertainty. It combines the rigour of mathematical models—such as expected utility ...