Select Asset Classes and Short-Term Risk Return Trade Off

Reference-Dependent Preferences and the Risk-Return Trade-off*

This paper studies the cross-sectional risk-return trade-off in the stock market. A fundamental principle in finance is the positive relation between risk and expected return, whereas recent empirical evidence suggests the opposite. We apply referencedependent preferences to shed light on this violation. Reference-dependent preferences (e.g., prospect theory) typically posit that when facing pr...

Neural foundations of risk-return trade-off in investment decisions

Many decisions people make can be described as decisions under risk. Understanding the mechanisms that drive these decisions is an important goal in decision neuroscience. Two competing classes of risky decision making models have been proposed to describe human behavior, namely utility-based models and risk-return models. Here we used a novel investment decision task that uses streams of (past...

Short-Term Generation Asset Valuation

In this paper we present a method for valuing a power plant over a short term period using Monte Carlo sim ulation The power plant valuation problem is formu lated as a multi stage stochastic problem We assume there are hourly markets for both electricity and the fuel used by the generator and their prices follow some Ito processes At each hour the power plant opera tor must decide to run or no...

Asset Accumulation and Short Term Employment

Semi-Parametric Weak Instrument Regressions with an Application to the Risk-Return Trade-off

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