Expected Utility and Risk Preferences

This video provides a basic explanation of how to calculate a consumer's expected utility from a risky choice. Also explain the different types of risk preferences and the relationship between the shape of a utility function and a consumer's risk preferences.

[@krullsull]

Thank you for your wonderful video. I am studying MSc Finance in university, and I did not understand what the professor was teaching. You taught it easily.

[@KatherineSilzCarson]

I am happy that this was helpful for you! Thank you for watching!

[@majdshamsedddine7179]

Thank you so much, I wish professors like you would teach at my university! Hope you are getting the recognition you deserve!❤️

[@KatherineSilzCarson]

Thank you for the kind comment - and thank you for watching!

[@RandomStuff3101]

Thank you so much! I wish my prof in uni could at least half the way you do. Keep up the amazing work and continue saving lives!! Much love

[@KatherineSilzCarson]

I am glad this video was helpful to you! Thank you for watching!

[@brownyandstaffy7000]

Your concepts are so clear and crisp its easy to understand.. thanku for making my doubt clear

[@KatherineSilzCarson]

Thank you for the feedback and for watching!

[@dinofrancisco2354]

Thank you.

[@KatherineSilzCarson]

You're welcome! Thank you for watching!

[@aa-my7kl]

Thanks for the video, very well explained!

[@KatherineSilzCarson]

Thank you for watching!

[@tsanya32]

Wish I had teachers like you in my University ❤ thanks for clearing my doubts

[@KatherineSilzCarson]

Glad I could help! Thank you for watching!

[@janlauterbach8204]

Very helpful. Thank you!

[@KatherineSilzCarson]

Thank you for watching!

[@nkululekotutani]

Thank you for the helpful video

[@KatherineSilzCarson]

Thank you for watching, Nkululeko!

[@camilleroesiamae8067]

amazing and very helpful video, thank you so much

[@KatherineSilzCarson]

I'm glad it was helpful. Thank you for watching!

[@SubodhKumar-fg9tn]

thank you so much !

[@KatherineSilzCarson]

Thank you for watching, Subodh!

[@dhuniyarameshchowdhary8595]

simply supervb😍

[@KatherineSilzCarson]

Thank you!

[@tejshah3495]

Thanks

[@KatherineSilzCarson]

Thank you for watching!

[@jingxinglu6889]

Is the case two risk adverse ? Thanks

[@KatherineSilzCarson]

If you mean Example #2, then yes in that example, the consumer is risk averse. Thank you for watching!

[@muhdsyafi7575]

👍

[@KatherineSilzCarson]

Thank you for watching!

[@sahibzadafaisalkhan6458]

Thank you ma'am😘😘

[@KatherineSilzCarson]

Thank you for watching!

[@davismotomiya29]

Wealth u(W) = ROOT W, W=10, probability 0.3 to turn to 100, 0.7 to lose everything, wants to avoid risk, how much is he willing to pay? (0,1,2,3)

[@KatherineSilzCarson]

Find the certain wealth amount that gives the same utility as the gamble. The difference between that number and 10 is the amount the person is willing to pay.

[@davismotomiya29]

@@KatherineSilzCarson So what's the answer 0, 1, 2 or 3?

[@sri9764]

instead of uni i should be paying u

[@KatherineSilzCarson]

Ha! Fortunately for you my videos are free (except for the ads - which are not my choice)! Thank you for watching!