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convex order


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1 حسابداری و مالی:: ترتیب محدب

8More precisely, in this context the appropriate notion to indicate when is a sum is flatter than another one is the so-called convex order. (2013) it is shown that maximum VaR bounds are obtained if one can create a dependence among the risks (restricted to the domain [q, 1]) that makes the sum minimum in the sense of convex order. A more general concept to discuss and compare variability of risks is the so- called convex order. One says that a risk X is smaller than a risk Y in the sense of convex order if and only if E(v(X)) (tm) E(v(Y )) for all convex functions v such that the expectations exist. Convex order is consistent with the preferences of risk averse decision makers (who maximize the expected utility of wealth with a concave utility function).

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