New reading entitled “Modeling Risk Preferences Using Taylor Series Expansions of Utility Functions”

I decided to write a 4 page teaching note entitled “Modeling Risk Preferences Using Taylor Series Expansions of Utility Functions” which more clearly documents the relationships between expected utility, the mean-variance model, and the mean-variance-skewness-kurtosis model. I plan to begin class tomorrow covering this reading and then moving on to the mean-variance model and stochastic dominance.

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