Course material – Week 4:

Discounting the Future and other Uncertainties

Reading 

1.     Lecture 4

2.     General reference

3.     Estimating Risk Aversion

4.     More Stocks May Not Make a Portfolio Safer

 

5.     Buffet Spots Fresh Bargain: Shares in His Own Company (WSJ, 09/27/11)

Games Played in Class

 

1.      Certainty equivalence

2.      Mutual fund