2022年行为金融学课后答案1至5章anawer【精华版】.docx

第-章 L Differentiate the following terms/concepts: Prospect and probability distribution A prospect is a lottery or series of wealth outcomes、 each of which is associated with a probability、 whereas a probability distribution defines the likelihood of possible outcomes. Risk and uncertainly Risk is measurable using probability, but uncertainty is not. Uncertainty is when probabilities can , t be assigned or the possible outcomes are unclear. Utility function and expected utility A utility function、denoted as u〔 )、assigns numbers to possible outcomes so that preferred choices receive higher numbers. Utility can be thought of as the satisfaction received from a particular outcome. Risk aversionx risk seeking, and risk neutrality Risk aversion describes someone who prefers the expected value of a lottery to the lottery itself. Risk seeking describes someone who prefers a lottery to the expected value of a lottery. And risk neutrality describes someone whose utility of the expected value of a lottery is equal to the expected utility of the lottery. When eating out、Rory prefers spaghetti over a hamburger. Last night she had a choice of spaghetti and macaroni and cheese and decided on the spaghetti again. The night before、 Rory had a choice between spaghetti, pizza? and a hamburger and this time she had pizza. Then, today she chose macaroni and cheese over a hamburger. Does her selection today indicate that Rory 1 s choices are consistent with economic rationality. Why or why not. Rory s preferences are consistent with rationality. They are complete and transitive. We see that her^preference orfering is: Pizza spaghetti macaroni and cheese hamburger w Consider a person with the following utility function over wealth: u (w) ? where e is =e the exponential function ( approximately equal to 2.7183 j and w = wealth in hundreds of thousands of dollars. Suppose that this person has a 40% chance of wealth of $50、000 and a 60% chance of wealth of $1. 000、000 as summarized by P (0.