Inter-temporal preferences several periods model Period t: consume c. invest the rest wealth in two assets,(1-x) percentage has a certain return of Ro and x, pays a random return of R Periodt+ 1: C=W=(W-CR Utility function (1…n)=∑oEl(c) t=0Inter-temporal preferences • several periods model – Period t: consume ct , invest the rest wealth in two assets, (1-xt ) percentage has a certain return of R0 and xt pays a random return of – Periodt+1: – Utility function: R1 1 1 ( ) t t t t c w w c R + + = = − 1 0 ( , ) ( ) T t T t t U c c Eu c  = = 