Given the magnitude of recent declines in the price of financial assets, commodities, and residential real estate [1], investors are coping with decisions about how to invest on a go forward basis. Our recent paper (appearing in our Investment Quarterly for Quarter 4, 2008] situates decision making within the context of investor ‘utility,’ where utility measures the investor’s aversion to declines in wealth as well as the investor’s satisfaction with gains in wealth.
| Attachment | Size |
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| Responses_FinancialMarketVolatility.pdf [2] | 131.77 KB |