Stochastic Dominance Class Problem Set and Solutions…

The Stochastic Dominance class problem set is available at http://fin4335.garven.com/spring2024/StochasticDominanceClassProblem.pdf. The Stochastic class problem set solutions are available at http://fin4335.garven.com/spring2024/StochasticDominanceClassProblemSolutions.pdf.

Risk Aversion Class Problem Set and Solutions…

The Risk Aversion class problem set is available at http://fin4335.garven.com/spring2024/Risk_Aversion_Class_Problem.pdf. The Risk Aversion class problem set solutions are available at http://fin4335.garven.com/spring2024/Risk_Aversion_Class_Problem_Solutions.pdf.

An important clarification of the logical principles behind the stochastic dominance model

On problem set 4, part D, most of you had no apparent difficulty in correctly establishing that the sum of the differences between the cumulative distribution (CDF) for risk 2 and the CDF for risk 1 is positive.   However, many of you drew the wrong conclusion, claiming that since the sum of differences between and …