This is a collection of JavaScript(tm) examples written to demonstrate the computation of Certain (i.e. Cash) Equivalent (CE) values based on Exponential Utility.

Select your payoff probability distribution family from the lists below:

Payoff Probability Distribution Families
Discrete Distributions Continuous Distributrions
Finite Discrete Uniform
Binomial Histogram
Poisson Normal
Geometric Exponential
Hypergeometric Triangular

* A rule of thumb to estimate your risk tolerance value is to ask yourself the question: "What is the maximum dollar amount you would be willing to gamble on a triple or nothing bet with even odds?" Take your answer to that question, multiply it by 2, and use that as your risk tolerance. Since ones feeling about this question are generally a little "fuzzy", a risk tolerance sensitivity has been provided to show the effect of increasing or decreasing the risk tolerance by 10% from your stated value.

Disclaimer: This form is based on the calculation of certain equivalent values using exponential utility with a specified risk tolerance. You should not feel compelled to act in accordance with the computed results, and the author shall not be liable for any monetary or consequential damages suffered as a result of using this form or script.

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