Probability of Loss and the Capital Asset Pricing Model

Asset Pricing in a Generalized Mean-Lower Partial Moment Framework: Theory and Evidence

“…14 The probability of loss, as a risk measure, has been studied by Kataoka (1963), Hanssman (1968), Peterson and Laughhunn (1971), and Laughhunn and Sprecher (1977).…”

Assessing Risk and Return of Pension Funds’ Portfolios By the Telser Safety‐First Approach

“…However, from what is available it appears that such portfolio managers emphasize the desire to avoid (or at least to limit) the risk of bad outcomes. Such a view was expressed by Laughhunn and Sprecher (1977), although their discussion concentrated mainly on the capital budgeting aspect. Other studies about actual executive behaviour under conditions of risk have found that executives have a tendency to define risk in terms of probability of experiencing an undesirable outcome (e.g.…”