Definition: Stochastic dominance is an abbreviation for first-order stochastic dominance. A possible
comparison relationship between two stochastic distributions. Let the
possible returns from assets A and B be described by statistical distributions
A and B. Payoff distribution A first-order stochastically dominates payoff
distribution B if for every possible payoff, the probability of getting a
payoff that high is never better in B than in A.
Terms related to Stochastic Dominance:
None
About.Com Resources on Stochastic Dominance:
None
Writing a Term Paper? Here are a few starting points for research on Stochastic Dominance:
Books on Stochastic Dominance:
None
Journal Articles on Stochastic Dominance:
None