Intertemporal Resolution of Uncertainty and Portfolio Behavior

Autor:	Muhammad Rashid, Kenneth D. Riener, Devinder K. Gandhi
Rok vydání:	1989
Předmět:	Microeconomics Consumption (economics) Flexibility (engineering) Economics and Econometrics Merton's portfolio problem Economics Portfolio Intertemporal consumption Resolution (logic) Finance
Zdroj:	The Financial Review. 24:491-497
ISSN:	1540-6288 0732-8516
DOI:	10.1111/j.1540-6288.1989.tb00354.x
Popis:	In this paper, it is shown that the early resolution of uncertainty improves the welfare of an investor who has utility defined over his intertemporal consumption. This result arises because the early resolution of uncertainty permits the investor the additional flexibility of rearranging his initial consumption. In contrast, if the investor has utility for terminal wealth, there is no effect on his portfolio behavior from the early resolution of uncertainty.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::6ae18fbed3017fca4f0fd95c4d5f8220 https://doi.org/10.1111/j.1540-6288.1989.tb00354.x Zobrazit plný text záznamu Plný text