This short (less than 30-minute, at https://baylor.instructure.com/courses/132670/external_tools/1217) video covers, in its entirety, the Decision Making under Risk and Uncertainty, part 3 lecture note scheduled for live presentation on Thursday. Unfortunately, the power outage caused by a severe ice storm in Austin during our class meeting that day prevented a live presentation of this material, so this is a recorded version of what we would have covered had the power outage not occurred. It is important for everyone to view this video prior to class on Tuesday, February 16, as it provides an important context for the Decision Making under Risk and Uncertainty, part 4 lecture note scheduled for that day.
Also in the Finance 4335 Media Gallery on Canvas, I have posted a recording entitled “Finance 4335 Review of concepts covered February 2-9”. This recording comprises the first 26 minutes of Thursday’s class, cut short, of course, by the power outage. In this video, I review concepts covered in the February 2-9 asynchronous recordings which also appear as part of the Finance 4335 Media Gallery on Canvas; particularly, the so-called “exact” and Arrow-Pratt (“approximate”) methods for calculating risk premiums. The class problem and solutions related to these topics are available at http://risk.garven.com/2021/02/13/risk-aversion-class-problem-solutions/.