risk aversion

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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
risk aversion

    Расстановка переносов

    risk a·ver·sion

    Турецкое произношение

    rîsk ıvırjın


    /ˈrəsk əˈvərᴢʜən/ /ˈrɪsk əˈvɜrʒən/


    [ 'risk ] (noun.) circa 1661. French risque, from Italian risco.

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