Chan, Raymond H. and Clark, Ephraim and Wong, WingKeung (2016): On the Third Order Stochastic Dominance for RiskAverse and RiskSeeking Investors with Analysis of their Traditional and Internet Stocks.

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Abstract
This paper presents some interesting new properties of third order stochastic dominance (TSD) for riskaverse and riskseeking investors. We show that the means of the assets being compared should be included in the definition of TSD for both investor types. We also derive the conditions on the variance order of two assets with equal means for both investor types and extend the second order SD (SSD) reversal result of Levy and Levy (2002) to TSD. We apply our results to analyze the investment behaviors on traditional stocks and internet stocks for both risk averters and risk seekers.
Item Type:  MPRA Paper 

Original Title:  On the Third Order Stochastic Dominance for RiskAverse and RiskSeeking Investors with Analysis of their Traditional and Internet Stocks 
English Title:  On the Third Order Stochastic Dominance for RiskAverse and RiskSeeking Investors with Analysis of their Traditional and Internet Stocks 
Language:  English 
Keywords:  Third order stochastic dominance, expectedutility maximization, risk aversion, risk seeking, investment behaviors. 
Subjects:  C  Mathematical and Quantitative Methods > C0  General > C00  General G  Financial Economics > G1  General Financial Markets > G11  Portfolio Choice ; Investment Decisions 
Item ID:  75002 
Depositing User:  WingKeung Wong 
Date Deposited:  11 Nov 2016 12:49 
Last Modified:  26 Sep 2019 21:22 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/75002 