Logo
Munich Personal RePEc Archive

Revisiting the Expected Utility Theory and the Consumption CAPM

Sapre, Nikhil (2021): Revisiting the Expected Utility Theory and the Consumption CAPM.

[img]
Preview
PDF
MPRA_paper_106668.pdf

Download (236kB) | Preview

Abstract

The concept of utility is the core component of many foundational theories in social sciences. It has evolved from a philosophical belief that people seek happiness and satisfaction to a mathematically derived theory in economics and finance. Beginning with a brief review of the developments in the Expected Utility Theory (EUT) and its applicability in equity pricing, this paper includes a critical appraisal of relevant theoretical and empirical studies from the fields of financial economics and behavioural studies, with a particular focus on the the Consumption Capital Asset Pricing Model (CCAPM).

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.