An Operational Measure of Riskiness

Dean P. Foster and Sergiu Hart

Journal of Political Economy, 2009, vol. 117, issue 5, 785 - 814

Abstract: We propose a measure of riskiness of “gambles” (risky assets) that is objective: it depends only on the gamble and not on the decision maker. The measure is based on identifying for every gamble the critical wealth level below which it becomes “risky” to accept the gamble.

Date: 2009
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Related works:
Working Paper: An Operational Measure of Riskiness (2007)
Working Paper: An Operational Measure of Riskiness (2007)
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