tag:blogger.com,1999:blog-5880610.post5352485364641259081..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: Venture capital in the 1980sSteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5880610.post-65806704254773345012015-01-22T05:36:44.363-05:002015-01-22T05:36:44.363-05:00From a rational expectations point of view, risk i...From a rational expectations point of view, risk is uncertainty in your lifetime utility. Consumption is often treated as a proxy for utility.<br /><br />The discount factor you apply to some uncertain stream of cash flows should depend on how those cash flows correlate with everything else that goes into determining your lifetime consumption.<br /><br />People have created new markets before andCorneliusnoreply@blogger.com