NotesFAQContact Us
Search Tips
Peer reviewed Peer reviewed
Direct linkDirect link
ERIC Number: EJ909355
Record Type: Journal
Publication Date: 2011
Pages: 5
Abstractor: As Provided
Reference Count: 15
ISSN: ISSN-0883-2323
A Survey Data Response to the Teaching of Utility Curves and Risk Aversion
Hobbs, Jeffrey; Sharma, Vivek
Journal of Education for Business, v86 n2 p59-63 2011
In many finance and economics courses as well as in practice, the concept of risk aversion is reduced to the standard deviation of returns, whereby risk-averse investors prefer to minimize their portfolios' standard deviations. In reality, the concept of risk aversion is richer and more interesting than this, and can easily be conveyed through theoretical or applied examples. The authors offer an example of a 2-asset choice problem in which risk-averse investors ought to prefer the asset with not only a higher standard deviation but also a lower expected return. A corresponding survey of 131 respondents confirmed this preference. (Contains 1 figure and 2 tables.)
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site:
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A