INVESTORS’ PREFERENCES AND PAYOFFS FROM STRUCTURED PRODUCTS
INVESTORS’ PREFERENCES AND PAYOFFS FROM STRUCTURED PRODUCTS
Author(s): Wojciech ZatońSubject(s): Economy
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: structured financial products; utility function; prospect theory
Summary/Abstract: The attractiveness of structured products is mainly due to the fact that the diversity of their structures corresponds to the specific preferences of different groups of investors. To determine the appropriate investment product for an investor it is necessary to identify investor preferences, attitude toward risk. The paper contains an analysis of investors preferences in relation to the payoffs from the typical structured products. Investors’ preferences are based both on the rational choice theory and the prospect theory.
Journal: Metody Ilościowe w Badaniach Ekonomicznych
- Issue Year: XIV/2013
- Issue No: 2
- Page Range: 279-288
- Page Count: 10
- Language: English
