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Wealth, Rationality, and Morality

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  • Kenneth S. Choie

Abstract

Most people—including mainstream academics—tend to view transactional profit as the return on an acquired asset, and the volatility of asset prices as the primary risk of acquiring one. Individuals seeking wealth can either trade assets or become long-term owners of them. However, the rate of return on assets, the nature of asset risk, and the value of diversification take on fundamentally different meanings and implications when individuals choose to be owners rather than traders.

Suggested Citation

  • Kenneth S. Choie, 2026. "Wealth, Rationality, and Morality," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 18(1), pages 1-9, January.
    • Handle: RePEc:ibn:ijefaa:v:18:y:2026:i:1:p:9
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    References listed on IDEAS

    as
    1. Robert C. Merton, 2005. "Theory of rational option pricing," World Scientific Book Chapters, in: Sudipto Bhattacharya & George M Constantinides (ed.), Theory Of Valuation, chapter 8, pages 229-288, World Scientific Publishing Co. Pte. Ltd..
    2. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    3. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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