--%>
Assignment Help - homework help

Explain the term utility function and uses

Explain the term utility function and uses.

E

Expert

Verified

The idea is not frequently used in practice in finance but is common in the literature, particularly economics literature. This utility function permits the ranking of the otherwise incomparable and it is used to describe people’s actions; rational people are supposed to act for that to increase their utility.

   Related Questions in Financial Management

  • Q : Cross-list equity shares on more than

    Explain any benefits you can think of for any company to cross-list its equity shares on more than one national exchange?A MNC that has a product market presence or manufacturing facilities in many countries may cross-list its shares on the exch

    		•
  • Q : Example of Forward and Backward

    Example of Forward and Backward Equations.

    		•
  • Q : Closed-end country funds trade at

    Why do you think closed-end country funds frequently trade at a premium or discount?CECFs trade at premium or discount since capital markets of the home & host countries are segmented, preventing cross-border arbitrage. If cross-border arbit

    		•
  • Q : Deterministic modelling approach in

    Explain the Deterministic modelling approach in Quantitative Finance.

    		•
  • Q : Question on security returns Security

    Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie

    		•
  • Q : Explain the term forward volatility

    Explain the term forward volatility.

    		•
  • Q : Deviations by purchasing power parity

    Normal 0 false false

  • Q : What did you meant by the Value of a

    What did you meant by the Value of a Contract? Answer: Value usually implies the theoretical cost of building up a new contract by simpler products, such as replicat

    		•
  • Q : Example to lay off the swap to an

    Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance

    		•
  • Q : Straight Supply Can I get the answers

    Can I get the answers for straight supply?

    		•