Difference between revisions of "Risk aversion"

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==Definitions==
 
==Definitions==
 
According to [[Organizational Behavior by Robbins and Judge (17th edition)]],
 
According to [[Organizational Behavior by Robbins and Judge (17th edition)]],
::[[Risk aversion]]. The tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff.
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:[[Risk aversion]]. The tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff.
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
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:[[Risk aversion]]. A risk-averse investor dislikes risk and requires a higher rate of return as an inducement to buy riskier securities.
  
 
==Related concepts==
 
==Related concepts==

Revision as of 18:53, 28 October 2019

Risk aversion is the tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff.


Definitions

According to Organizational Behavior by Robbins and Judge (17th edition),

Risk aversion. The tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Risk aversion. A risk-averse investor dislikes risk and requires a higher rate of return as an inducement to buy riskier securities.

Related concepts

Related lectures