Purpose

The purpose of this paper is to establish a deterministic equivalent income model (DEIM) based on the risk cost (RC) and risk aversion of investors. The model fully considers both subjective and objective factors that affect risk investment and reasonably evaluates risk investment schemes to choose the correct investment scheme and gain greater investment returns.

Design/methodology/approach

The utility function is used to measure the extent to which an investor is satisfied by investment returns in various scenarios. Risk aversion expresses subjective attitude of investors to risk. RC represents risk loss in currency. This methodology is based on risk aversion function, utility function and RC theory to establish DEIM.

Findings

This study shows that investors with different risk preferences have different certainty equivalent returns (CER), so their choices of investment options change accordingly.

Practical implications

In this paper, the authors use DEIM to test an investment case and conclude that the CER and investment scheme both change with different risk preferences. At the same time, case analysis shows that DEIM is reasonable and stable when evaluating risk investment schemes.

Originality/value

In this study, the authors innovate by introducing both the RC and risk aversion degree into risk investment schemes evaluation and by deriving a utility function from the absolute risk aversion function to build a utility decision matrix and establish DEIM. The model combines the subjective and objective factors that influence risk investment decisions.

中文翻译：

---

确定性等值收入模型中的风险投资决策

目的

本文的目的是建立基于风险成本（RC）和投资者的风险规避的确定性等值收益模型（DEIM）。该模型充分考虑了影响风险投资的主观因素和客观因素，并合理评估了风险投资方案，以选择正确的投资方案并获得更大的投资收益。

设计/方法/方法

效用函数用于衡量各种情况下投资者对投资回报的满意程度。风险规避表达了投资者对风险的主观态度。RC代表货币风险损失。该方法基于风险规避函数，效用函数和RC理论建立DEIM。

发现

这项研究表明，具有不同风险偏好的投资者具有不同的确定性等值收益率（CER），因此他们对投资选择的选择也会相应地变化。

实际影响

在本文中，作者使用DEIM检验了一个投资案例，并得出CER和投资计划都随不同的风险偏好而变化的结论。同时，案例分析表明DEIM在评估风险投资计划时是合理且稳定的。

创意/价值

在这项研究中，作者通过将RC和风险规避程度都引入风险投资方案评估中，并从绝对风险规避函数中推导了效用函数来建立效用决策矩阵并建立DEIM，从而进行了创新。该模型结合了影响风险投资决策的主观和客观因素。