2002 | OriginalPaper | Chapter
Analysis of Prominent Decision Rules
Author : Thilo Goodall
Published in: Adequate Decision Rules for Portfolio Choice Problems
Publisher: Palgrave Macmillan UK
Included in: Professional Book Archive
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Portfolio choice problems have been shown to be special cases of decisions under Knightian risk. Investments are gambles, because the investments’ results, and the utility they provide, depend on the outcome of a chance experiment. If portfolio selection is a special case of decision theory, and if Debreu’s axioms are taken as valid, portfolio selection problems may be solved by applying decision rules. The decision rules that have, or have had, some importance in portfolio choice theory will now be characterised. They will be analysed in the following chapters.