This book represents a concise summary of basic multiperiod decision-making under risk. Its detailed coverage
of a broad range of topics is ideally suited for use in advanced undergraduate and introductory graduate courses
either as a self-contained text, or the introductory chapters combined with a selection of later chapters can represent
core reading in courses on macroeconomics, insurance, portfolio choice, or asset pricing." The authors start
with the fundamentals of risk measurement and risk aversion. They then apply these concepts to insurance decisions
and portfolio choice in a one-period model. After examining these decisions in their one-period setting, they devote
most of the book to a multiperiod context, which adds the long-term perspective most risk management analyses require.
Each chapter concludes with a discussion of the relevant literature and a set of problems.