RISKAVERSIONANDCAPITALALLOCATIONTORISKYASSETSLecture3rswillavoidriskunlessthereisareward.itymodelgivestheoptimalallocationbetweenariskyportfolioandarisk-freeasset.RiskandRiskAveSpeculationingconsiderableriskforacommensurategainrtieshaveheterogeneousexpectationsRiskandRiskAvemblewageronanuncertainoutcomeforenjoymentsassignthesameprobabilitiestothepossibleoutcomesRiskAversionandUtilitTable6.1Avai...
