Publisher Summary In a recent paper, Mossin attempts to isolate the class of utility functions of terminal wealth, f(x), which, in the sequential portfolio problem, induces myopic utility functions of intermediate wealth positions. Induced utility functions of shortrun wealth are myopic whenever they are independent of yields beyond the current period, that is, they are positive linear transformations of f(x). Mossin concludes that the logarithmic function and the power functions induce completely myopic utility functions, that when the interest rate in each period is zero, all terminal wealth functions such that the risk tolerance index—f’(x)/f”(x) is linear in x induce completely myopic utility functions of short-run wealth, that when interest rates are not zero, the last class of terminal wealth functions induces partially myopic utility functions, and that all of the preceding is true whether the yields in the various periods are serially correlated or not. With the exception of the last assertion, the same conclusions are reached by Leland. The second and third statements are true only in a highly restricted sense even when yields are serially independent and that when investment yields in the various periods are statistically dependent, only the logarithmic function induces utility functions of short-run wealth that are myopic. On optimal myopic portfolio policies, with and without serial correlation of yields in view of the difficulty of estimating future yields and their apparent serial correlation, the myopic property of the logarithmic utility functions is highly significant. However, this function also has other attractive properties.