A STOCHASTIC MULTIATTRIBUTE HEURISTIC MODEL OF INVESTOR CHOICE
- 1 July 1980
- journal article
- Published by Wiley in Decision Sciences
- Vol. 11 (3) , 425-438
- https://doi.org/10.1111/j.1540-5915.1980.tb01149.x
Abstract
Most models of investor behavior consider only two attributes of assets, risk and return, and are deterministic in that only one unique choice is allowed. This paper develops a multiattribute model in which investor choice is described in terms of the probability of various choices occurring. The model is solved by standard linear programming techniques and allows for investor behavior that is not explained by the usual models.Keywords
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