risk aversion

İngilizce - İngilizce

risk aversion teriminin İngilizce İngilizce sözlükte anlamı: Risk aversion is a concept in economics, finance, and psychology related to the behaviour of consumers and investors under uncertainty. Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff; the avoidance of bearing risk; An individual who is risk averse must be compensated for taking risks in the form of a premium over and above the return to a completely certain investment or outcome See Certainty Equivalents; The unwillingness of investors to take risk Since most investors are risk-adverse, they must be compensated to take additional risk; The dislike of risk For risk averse investors, the pain from losing $1 is greater than the pleasure of winning $1 Thus, such investors have to be compensated with additional return to induce them to hold risky assets; This concept refers to the fact that individuals are willing to pay money (or not to receive a high return) to avoid playing a risky game, even when the expected value of the game is in their favor; A measure of an investor's attitude towards risk A high risk aversion translates into a low tolerance or comfort with risk; The general tendency to be afraid of taking risks even when they also carry substantial potential gain; Occurs when someone is willing to pay to reduce or avoid uncertainty even though, on average, they would be better off financially by living with the uncertainty