Application of utility theory to the risky investment de cision

The application of utility th eory to risky investment decision has a good start to associate risk with utility.First,this paper traces back to the history of utility theory and the process of its application to risky decision.Then based on several ex perimental studies,this paper uncoves some fatal limits of expect ed utility theory.At last,it reaches the conclusion that there are still some as pects to need improve in the application of expected utility theory to risky investment decision.