《经济类课件汇集》教学资源（PPT讲稿，英文版）Chapter Thirteen Risky Assets

Preferences over Risky assets Mean return, H Preferred Higher mean return is a good Higher risk is a bad St Dev of return, o

Preferences over Risky Assets Preferred Higher mean return is a good. Higher risk is a bad. Mean Return,  St. Dev. of Return, 

Preferences over Risky assets How is the MRs computed?

Preferences over Risky Assets How is the MRS computed?

Preferences over Risky assets How is the MRs computed? Bu u+do=0 0 do 元/cσ do a0/ ou

Preferences over Risky Assets How is the MRS computed? dU U d U d U d U d d d U U = + =  = −  = −                   0 / /

Preferences over Risky assets Mean return, H Preferred Higher mean return is a good Higher risk is a bad d 元/0 do 00/8 St Dev of return, o

Preferences over Risky Assets Mean Return,  St. Dev. of Return,  Preferred Higher mean return is a good. Higher risk is a bad. d d U U       = − / /

Budget Constraints for Risky Assets Two assets Risk-free asset's rate-or-return is rf Risky stock's rate-or-return is ms if state s occurs, with prob. T Risky stock's mean rate-of-return is S

Budget Constraints for Risky Assets Two assets. Risk-free asset’s rate-or-return is rf . Risky stock’s rate-or-return is ms if state s occurs, with prob. s . Risky stock’s mean rate-of-return is rm ms s s S = =   . 1