ce_power {ceRtainty}

Certainty Equivalent Computation using Power Utility Function

Description

Certainty Equivalent Computation using Power Utility Function

Usage

ce_power(data, rac_ini, rac_fin, weight = 0)

Arguments

data

data.frame with profit values

rac_ini

Initial value for the RAC sequence

rac_fin

Final value for the RAC sequence

weight

Original wealth

Value

Generate three objects: A table with the CEs, a vector of risk aversion coefficients RAC, and a plot to compare the CEs.