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http://hdl.handle.net/2445/177590
Title: | The Von Neumann-Morgenstern theory and rational choice |
Author: | Juan Carreño, Daniel |
Director/Tutor: | Corcuera Valverde, José Manuel |
Keywords: | Matemàtica financera Treballs de fi de grau Teoria de la utilitat Indicadors econòmics Avaluació del risc Business mathematics Bachelor's theses Utility theory Economic indicators Risk assessment |
Issue Date: | 21-Jun-2020 |
Abstract: | [en] Expected Utility Theory (EUT) is an axiomatic theory of choice under risk that has held a central role in economic theory since the 1940s. Throughout this work we will give a thorough description of the von Neumann-Morgenstern theory, which is the cornerstone of EUT and Games Theory. Using the theory and its axiomatisation, we will review its main drawbacks in order to give a proper model of Rational Choice. Furthermore, we will briefly introduce Risk Management, which is a crucial process used to make investment decisions. The process consists in identifying and analysing the amount of risk involved in an investment, and either accepting that risk or mitigating it. |
Note: | Treballs Finals de Grau de Matemàtiques, Facultat de Matemàtiques, Universitat de Barcelona, Any: 2020, Director: José Manuel Corcuera Valverde |
URI: | http://hdl.handle.net/2445/177590 |
Appears in Collections: | Treballs Finals de Grau (TFG) - Matemàtiques |
Files in This Item:
File | Description | Size | Format | |
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177590.pdf | Memòria | 575.29 kB | Adobe PDF | View/Open |
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