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 [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[Risk aversion]]. Risk-averse investors dislike risk and require higher rates of return as an inducement to buy riskier securities.
  
 
==Related concepts==
 
==Related concepts==
 
*[[Enterprise]].  
 
*[[Enterprise]].  
  
==Related coursework==
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==Related lectures==
*[[Effort Engineering Quarter]].  
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*[[Individual Decisions Quarter]].  
  
 
[[Category: Septem Artes Administrativi]][[Category: Articles]]
 
[[Category: Septem Artes Administrativi]][[Category: Articles]]

Latest revision as of 23:45, 1 November 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 Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Risk aversion. Risk-averse investors dislike risk and require higher rates of return as an inducement to buy riskier securities.

Related concepts

Related lectures