Risk-Free Versus Risky Assets: Teaching a Portfolio Model with Application to the Stock Market
In this paper, we present an application where advanced undergraduate students can solve the expected utility portfolio model with a risk-free asset and a risky asset with both up and down returns in the stock market. With real stock market data, we use Excel Solver to find the portfolio decision an...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2021 |
| País: | España |
| Institución: | Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya) |
| Repositorio: | Recercat. Dipósit de la Recerca de Catalunya |
| OAI Identifier: | oai:recercat.cat:10256/24869 |
| Acceso en línea: | http://hdl.handle.net/10256/24869 |
| Access Level: | acceso abierto |
| Palabra clave: | Borsa de valors Stock exchanges Risc Risk |
| Sumario: | In this paper, we present an application where advanced undergraduate students can solve the expected utility portfolio model with a risk-free asset and a risky asset with both up and down returns in the stock market. With real stock market data, we use Excel Solver to find the portfolio decision and study how it changes when considering assets with different returns. Finally, we test students’ portfolio decisions and their degree of risk aversion using different utility functions |
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