risk preference

The attitude of an investor or decision maker to risks. See risk-averse; risk-neutral; risk-seeking

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Risk — takers redirects here. For the Canadian television program, see Risk Takers. For other uses, see Risk (disambiguation). Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable… …   Wikipedia

  • Risk-neutral measure — In mathematical finance, a risk neutral measure, is a prototypical case of an equivalent martingale measure. It is heavily used in the pricing of financial derivatives due to the fundamental theorem of asset pricing, which implies that in a… …   Wikipedia

  • risk-averse — Describing a risk preference in which a decision maker s attraction to an investment or other economic choice rises with higher average returns and falls with greater standard deviations of returns. Compare risk neutral; risk seeking See also… …   Big dictionary of business and management

  • risk-neutral — Describing a risk preference in which the decision maker is influenced only by the average return on an investment or other choice and not by the standard deviation of returns. Compare risk averse; risk seeking …   Big dictionary of business and management

  • risk-seeking — Describing a risk preference in which the decision maker s attraction to an investment or other economic choice rises with higher average returns and a higher standard deviation of returns. Compare risk averse; risk neutral …   Big dictionary of business and management

  • Risk perception — is the subjective judgment that people make about the characteristics and severity of a risk. The phrase is most commonly used in reference to natural hazards and threats to the environment or health, such as nuclear power. Several theories have… …   Wikipedia

  • preference — pref·er·ence / pre frəns, fə rəns/ n 1: the right to prior payment of a debt with preference over the creditors of the heirs or legatees Louisiana Civil Code 2: the transfer of an insolvent debtor s interest in property to a creditor for an… …   Law dictionary

  • Risk-based Testing — (RBT) is a type of software testing that prioritizes the features and functions to be tested based on priority/importance and likelihood or impact of failure. In theory, since there is an infinite number of possible tests, any set of tests must… …   Wikipedia

  • Risk (game) — Infobox Game subject name = image link = image caption = A typical game of Risk in play. players = 2–6 ages = 10+ setup time = 5–20 minutes playing time = 1–8 hours (player dependent) complexity = medium strategy = high random chance = Medium… …   Wikipedia

  • Risk-return spectrum — The risk return spectrum is the relationship between the amount of return gained on an investment and the amount of risk undertaken in that investment.fact|date=September 2007 The more return sought, the more risk that must be undertaken.The… …   Wikipedia

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