Certainty Equivalent
curl --request POST \
--url https://api.fincept.in/quantlib/economics/utility/certainty-equivalent \
--header 'Content-Type: application/json' \
--header 'X-API-Key: <api-key>' \
--data '
{
"utility_type": "crra",
"param": 2,
"outcomes": [
8000,
12000
],
"probabilities": [
0.5,
0.5
]
}
'import requests
url = "https://api.fincept.in/quantlib/economics/utility/certainty-equivalent"
payload = {
"utility_type": "crra",
"param": 2,
"outcomes": [8000, 12000],
"probabilities": [0.5, 0.5]
}
headers = {
"X-API-Key": "<api-key>",
"Content-Type": "application/json"
}
response = requests.post(url, json=payload, headers=headers)
print(response.text)const options = {
method: 'POST',
headers: {'X-API-Key': '<api-key>', 'Content-Type': 'application/json'},
body: JSON.stringify({
utility_type: 'crra',
param: 2,
outcomes: [8000, 12000],
probabilities: [0.5, 0.5]
})
};
fetch('https://api.fincept.in/quantlib/economics/utility/certainty-equivalent', options)
.then(res => res.json())
.then(res => console.log(res))
.catch(err => console.error(err));<?php
$curl = curl_init();
curl_setopt_array($curl, [
CURLOPT_URL => "https://api.fincept.in/quantlib/economics/utility/certainty-equivalent",
CURLOPT_RETURNTRANSFER => true,
CURLOPT_ENCODING => "",
CURLOPT_MAXREDIRS => 10,
CURLOPT_TIMEOUT => 30,
CURLOPT_HTTP_VERSION => CURL_HTTP_VERSION_1_1,
CURLOPT_CUSTOMREQUEST => "POST",
CURLOPT_POSTFIELDS => json_encode([
'utility_type' => 'crra',
'param' => 2,
'outcomes' => [
8000,
12000
],
'probabilities' => [
0.5,
0.5
]
]),
CURLOPT_HTTPHEADER => [
"Content-Type: application/json",
"X-API-Key: <api-key>"
],
]);
$response = curl_exec($curl);
$err = curl_error($curl);
curl_close($curl);
if ($err) {
echo "cURL Error #:" . $err;
} else {
echo $response;
}package main
import (
"fmt"
"strings"
"net/http"
"io"
)
func main() {
url := "https://api.fincept.in/quantlib/economics/utility/certainty-equivalent"
payload := strings.NewReader("{\n \"utility_type\": \"crra\",\n \"param\": 2,\n \"outcomes\": [\n 8000,\n 12000\n ],\n \"probabilities\": [\n 0.5,\n 0.5\n ]\n}")
req, _ := http.NewRequest("POST", url, payload)
req.Header.Add("X-API-Key", "<api-key>")
req.Header.Add("Content-Type", "application/json")
res, _ := http.DefaultClient.Do(req)
defer res.Body.Close()
body, _ := io.ReadAll(res.Body)
fmt.Println(string(body))
}HttpResponse<String> response = Unirest.post("https://api.fincept.in/quantlib/economics/utility/certainty-equivalent")
.header("X-API-Key", "<api-key>")
.header("Content-Type", "application/json")
.body("{\n \"utility_type\": \"crra\",\n \"param\": 2,\n \"outcomes\": [\n 8000,\n 12000\n ],\n \"probabilities\": [\n 0.5,\n 0.5\n ]\n}")
.asString();require 'uri'
require 'net/http'
url = URI("https://api.fincept.in/quantlib/economics/utility/certainty-equivalent")
http = Net::HTTP.new(url.host, url.port)
http.use_ssl = true
request = Net::HTTP::Post.new(url)
request["X-API-Key"] = '<api-key>'
request["Content-Type"] = 'application/json'
request.body = "{\n \"utility_type\": \"crra\",\n \"param\": 2,\n \"outcomes\": [\n 8000,\n 12000\n ],\n \"probabilities\": [\n 0.5,\n 0.5\n ]\n}"
response = http.request(request)
puts response.read_body{
"success": true,
"data": {
"certainty_equivalent": 9798
}
}{
"detail": "Invalid API key"
}{
"detail": "Endpoint requires Basic tier or higher"
}{
"detail": [
{
"loc": [
"body",
"outcomes"
],
"msg": "ensure this value has at least 1 items",
"type": "value_error.list.min_items"
}
]
}quantlib-economics
Certainty Equivalent
Calculate the certainty equivalent (CE) of a risky lottery: the guaranteed amount that yields the same utility as the risky prospect. CE solves U(CE) = E[U(X)] where X is the random outcome. For risk-averse individuals, CE < E[X] (expected value). The difference E[X] - CE is the risk premium. Returns the certain wealth equivalent to the lottery. Use for valuing risky assets and insurance. [Tier: STANDARD, Credits: 2]
POST
/
quantlib
/
economics
/
utility
/
certainty-equivalent
Certainty Equivalent
curl --request POST \
--url https://api.fincept.in/quantlib/economics/utility/certainty-equivalent \
--header 'Content-Type: application/json' \
--header 'X-API-Key: <api-key>' \
--data '
{
"utility_type": "crra",
"param": 2,
"outcomes": [
8000,
12000
],
"probabilities": [
0.5,
0.5
]
}
'import requests
url = "https://api.fincept.in/quantlib/economics/utility/certainty-equivalent"
payload = {
"utility_type": "crra",
"param": 2,
"outcomes": [8000, 12000],
"probabilities": [0.5, 0.5]
}
headers = {
"X-API-Key": "<api-key>",
"Content-Type": "application/json"
}
response = requests.post(url, json=payload, headers=headers)
print(response.text)const options = {
method: 'POST',
headers: {'X-API-Key': '<api-key>', 'Content-Type': 'application/json'},
body: JSON.stringify({
utility_type: 'crra',
param: 2,
outcomes: [8000, 12000],
probabilities: [0.5, 0.5]
})
};
fetch('https://api.fincept.in/quantlib/economics/utility/certainty-equivalent', options)
.then(res => res.json())
.then(res => console.log(res))
.catch(err => console.error(err));<?php
$curl = curl_init();
curl_setopt_array($curl, [
CURLOPT_URL => "https://api.fincept.in/quantlib/economics/utility/certainty-equivalent",
CURLOPT_RETURNTRANSFER => true,
CURLOPT_ENCODING => "",
CURLOPT_MAXREDIRS => 10,
CURLOPT_TIMEOUT => 30,
CURLOPT_HTTP_VERSION => CURL_HTTP_VERSION_1_1,
CURLOPT_CUSTOMREQUEST => "POST",
CURLOPT_POSTFIELDS => json_encode([
'utility_type' => 'crra',
'param' => 2,
'outcomes' => [
8000,
12000
],
'probabilities' => [
0.5,
0.5
]
]),
CURLOPT_HTTPHEADER => [
"Content-Type: application/json",
"X-API-Key: <api-key>"
],
]);
$response = curl_exec($curl);
$err = curl_error($curl);
curl_close($curl);
if ($err) {
echo "cURL Error #:" . $err;
} else {
echo $response;
}package main
import (
"fmt"
"strings"
"net/http"
"io"
)
func main() {
url := "https://api.fincept.in/quantlib/economics/utility/certainty-equivalent"
payload := strings.NewReader("{\n \"utility_type\": \"crra\",\n \"param\": 2,\n \"outcomes\": [\n 8000,\n 12000\n ],\n \"probabilities\": [\n 0.5,\n 0.5\n ]\n}")
req, _ := http.NewRequest("POST", url, payload)
req.Header.Add("X-API-Key", "<api-key>")
req.Header.Add("Content-Type", "application/json")
res, _ := http.DefaultClient.Do(req)
defer res.Body.Close()
body, _ := io.ReadAll(res.Body)
fmt.Println(string(body))
}HttpResponse<String> response = Unirest.post("https://api.fincept.in/quantlib/economics/utility/certainty-equivalent")
.header("X-API-Key", "<api-key>")
.header("Content-Type", "application/json")
.body("{\n \"utility_type\": \"crra\",\n \"param\": 2,\n \"outcomes\": [\n 8000,\n 12000\n ],\n \"probabilities\": [\n 0.5,\n 0.5\n ]\n}")
.asString();require 'uri'
require 'net/http'
url = URI("https://api.fincept.in/quantlib/economics/utility/certainty-equivalent")
http = Net::HTTP.new(url.host, url.port)
http.use_ssl = true
request = Net::HTTP::Post.new(url)
request["X-API-Key"] = '<api-key>'
request["Content-Type"] = 'application/json'
request.body = "{\n \"utility_type\": \"crra\",\n \"param\": 2,\n \"outcomes\": [\n 8000,\n 12000\n ],\n \"probabilities\": [\n 0.5,\n 0.5\n ]\n}"
response = http.request(request)
puts response.read_body{
"success": true,
"data": {
"certainty_equivalent": 9798
}
}{
"detail": "Invalid API key"
}{
"detail": "Endpoint requires Basic tier or higher"
}{
"detail": [
{
"loc": [
"body",
"outcomes"
],
"msg": "ensure this value has at least 1 items",
"type": "value_error.list.min_items"
}
]
}Authorizations
API key for authentication. Get your key at https://api.fincept.in/auth/register
Body
application/json
Type of utility function to use
Available options:
cara, crra, log Example:
"crra"
Possible wealth outcomes
Minimum array length:
1Example:
[8000, 12000]
Utility function parameter (risk_aversion for CARA, gamma for CRRA, unused for log)
Example:
2
Probabilities for each outcome (must sum to 1, if null uses uniform)
Required range:
0 <= x <= 1Example:
[0.5, 0.5]
⌘I
