Certainty Equivalent
(redirected from Expected utility hypothesis)

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Certainty equivalent

An amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount.

Certainty Equivalent

A small, zero-risk return an investor may trade for a larger potential return with an associated risk. Companies offer certainty equivalent returns on certain investments and use their demand to determine the level of risk an investor will accept for a given return from the company.

certainty equivalent

The minimum sum of money a person would accept to forgo the opportunity to participate in an event for which the outcome, and therefore his or her receipt of a reward, is uncertain. For example, suppose you are told to draw one card from a full deck of cards. If you draw a red card you win $100 and if you draw a black card you win nothing. If you would accept $40 to forgo the selection and possibility of winning, $40 is the certainty equivalent of the outcome of the event. Certainty equivalents are used in evaluating risk.

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Certainty Equivalent Return Risk-adjusted profitability			In section II, a primal two-period decision problem is defined for a competitive agent under the expected utility hypothesis. Economic behavior under temporal uncertainty by Larson, Bruce A. / Southern Economic Journal Introduction The expected utility hypothesis is somewhat controversial. The expected utility hypothesis as immunity against the "legal" ... by Persky, Allan / Southern Economic Journal Introduction The expected utility hypothesis predicts that, when the price of insurance is actuarially fair to the consumer, a risk-averse consumer will choose to fully insure against a potential loss. Income, risk aversion, and the demand for insurance by Zellner, B. Bruce / Southern Economic Journal			Exit Fee Exit Strategy Exogenous Exogenous Uncertainty Exogenous Variable Exordium Clause Exotic Option Expansion Expansion monetaria expansion option Expatriate Expectations Hypothesis Expectations Hypothesis Theories Expectations Index Expectations Theory of Forward Exchange Rates Expectativas inflacionarias Expected Dividend Yield Expected Future Cash Flows Expected Future Return Expected Rate of Inflation Expected Rate of Return Expected Return Expected return on investment Expected Return-Beta Relationship Expected Spot Rate Expected utility hypothesis Expected Value Expected Value of Perfect Information Expedited Funds Availability Act Expense Account expense ratio expense stop Expensed expenses Expenses of Sale Expensing Expensive Experian Experience Rating Expert system Expiracion Expiration Expiration Cycle Expiration Date Expiration Effect Expiration Friday Expiration Series Expiration Time expire Explicit Bankruptcy Costs Explicit Cost			Expected Return on Assets Expected return on investment Expected return on investment Expected Return to Service Expected return-beta relationship Expected Returns Expected Schoolwide Learning Results Expected Service Life Expected shortfall Expected Spot Rate Expected Start Timeout Expected Synchronization Delay Expected Tail Loss Expected Test Time Expected Throughput Expected Time of Arrival Expected Time of Berthing Expected Time of Departure Expected Time to Kill Expected to Realize Expected Transient Reward Rate Expected Transmission Time Expected Unserved Energy expected utilities expected utilities Expected utility Expected utility Expected utility hypothesis Expected Utility Theory Expected Utility Value expected value expected value expected value expected value expected value expected value Expected Value of Imperfect Information Expected Value of Including Uncertainty Expected Value of Information Expected value of perfect information Expected value of perfect information Expected value of sample information Expected Value Score Expected Value With Perfect Information Expected values Expected values Expected values Expected Vertical Error Expected Warranty Cost Expected Week of Childbirth Expected Won-Loss Expected Years of Life Lost expectedly expectedly expectedly expectedly expectedness expectedness

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Certainty Equivalent (redirected from Expected utility hypothesis)

Certainty Equivalent
(redirected from Expected utility hypothesis)