Logarithmic Utility Function

Evaluate logarithmic utility function: U(w) = ln(w). This is a special case of CRRA with gamma = 1. Returns utility value, marginal utility (1/w), absolute risk aversion (1/w), and relative risk aversion (constant = 1). Log utility exhibits decreasing absolute risk aversion and constant relative risk aversion. Commonly used in portfolio theory and growth-optimal strategies. [Tier: STANDARD, Credits: 2]

POST /quantlib/economics/utility/log

Logarithmic Utility Function

cURL

curl --request POST \
  --url https://api.fincept.in/quantlib/economics/utility/log \
  --header 'Content-Type: application/json' \
  --header 'X-API-Key: <api-key>' \
  --data '
{
  "wealth": 10000
}
'

200

{
  "success": true,
  "data": {
    "utility": 9.21,
    "marginal_utility": 0.0001,
    "absolute_risk_aversion": 0.0001,
    "relative_risk_aversion": 1
  }
}

Authorizations

X-API-Key · string · header · required

API key for authentication. Get your key at https://api.fincept.in/auth/register

Body

application/json

wealth · number · required

Current wealth level (must be positive)

Required range: x > 0

Example:

10000

Response

200

application/json

Successful Response

success · boolean

Example:

true

data · object

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