The Knightian Factor Based on the BSV Model

摘要

Under the Knightian uncertainty environment,this paper explores the asset pricing issues from two aspects of behavioral finance which are the investor's representative behavioral deviation and conservative behavioral deviation.On the basis of the BSV model,this paper educes the asset pricing formula containing the Knightian factor.In this paper,we present the probability of the investor committed the conservative behavioral deviations at the current time period as the Knightian factor,with emphasis on Knightian factor analysis.