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Merton's portfolio problem is a problem in continuous-time finance and in particular intertemporal portfolio choice.An investor must choose how much to consume and must allocate their wealth between stocks and a risk-free asset so as to maximize expected utility.
Most theoretical analyses of risky choices depict each option as a gamble that can yield various outcomes with different probabilities. [2] Widely accepted risk-aversion theories, including Expected Utility Theory (EUT) and Prospect Theory (PT), arrive at risk aversion only indirectly, as a side effect of how outcomes are valued or how probabilities are judged. [3]
Factors of risk perceptions. Risk perception is the subjective judgement that people make about the characteristics and severity of a risk. [1] [2] [3] Risk perceptions often differ from statistical assessments of risk since they are affected by a wide range of affective (emotions, feelings, moods, etc.), cognitive (gravity of events, media coverage, risk-mitigating measures, etc.), contextual ...
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Questionnaire- and interview-based scales, by contrast, ask for the respondent's typical behavior. [3] Symptom and attitude tests are more often called scales. A useful psychological test/scale must be both valid , i.e., show evidence that the test or scale measures what it is purported to measure, [ 1 ] [ 4 ] ) and reliable , i.e., show ...
The Oxford–Liverpool Inventory of Feelings and Experiences (O-LIFE) is a questionnaire for measuring psychosis-proneness, principally schizotypy. [1] It was introduced in 1995 and has since been used in a variety of experimental and clinical studies.
The Jadad scale, sometimes known as Jadad scoring or the Oxford quality scoring system, is a procedure to assess the methodological quality of a clinical trial by objective criteria. It is named after Canadian - Colombian physician Alex Jadad who in 1996 described a system for allocating such trials a score of between zero (very poor) and five ...
Risk quotient (RQ) as it pertains to human behavior is a measure of a person's natural level of risk inclination. Researched and defined by author and professional skydiver Jim McCormick in behavioral sciences , RQ builds on the concept of risk quotient operative in finance and both environmental and medical science.