Arrow-Pratt Measure of Absolute and Relative Risk Aversion

[@pedrocolangelo5844]

Thanks a lot, prof. Justin! Your video is certainly the best on the Arrow-Pratt risk aversion coefficient on TH-cam!

[@elvitd6704]

for sure, couldn't find any better

[@sukhrajb9382]

This was brilliant, made it very easy to understand

[@alonsoquijano6749]

Do you have the slides? Thanks!

[@peipeik9056]

You're my hero, thanks a lot!

[@stephenwainaina494]

Very nice explanation ,

[@houssammekki3996]

Why is it divided to relative sense or absolue sense if it makes the same conclusion because if we say the invested percentage increase in risky assets it is same if we say we hold more amount in risk assets ?

[@kleinebackereikim879]

Thank you so much!
what would you say is this individual's absolute and relative risk aversion?
U(Y)= 1-e^2*Y

[@DhritiArora-e1q]

thank you, it was certainly very helpful.

[@DwiMarthaYulia]

Can you make a practice or tutorial example of Arrow-Pratt Measure of Absolute and Relative Risk Aversion in Stata?

[@MrPuberoon]

This was helpful. Thanks! Keep making more videos.

[@ottoberger6706]

awesome video!! can you link the paper, from where this informations are from pls?

[@joshuagaa7009]

Sir, at 19:18 , i think that should be written as "as wealth *decreases" instead of increases.

[@pere5603]

great video

[@Marteenez_]

Why is the absolute risk aversion defined in that way (as a ratio of the 2nd and 1st derivatives)? Why not just use the 2nd derivative to see how much the utility function is levelling off?

[@mateuspucciarelli7799]

because the results shouldn't change if you make an affine transformation of the utility function, it is, u(x) and v(x) = a*u(x) + b should be able to represent the same situation.
But r(x) = u''(x) is not equal to r(x) = v''(x) = a*u''(x)

[@ThuHuongHaThi]

Thank you a lot, the video did provide a helpful explanation

[@jbetanco7733]

good job man

[@theophilusamoah330]

Very helpful.. Thnks

[@iskandarzulkifly4067]

you have helped me a lot thank you so muchh

[@lourdesortega3603]

TE AMO GRACIAS!

[@danendranganabathiraman1882]

It helped, thanks

[@itssabah_]

My last resort :)

[@dombaaresther7264]

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