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Acronyms that contain the term risk aversion 

What does risk aversion mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: risk aversion.

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RRA

Relative Risk Aversion

Business » General Business

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HARA

Hyperbolic Absolute Risk Aversion

Business » General Business

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CPRA

Constant Proportional Risk Aversion

Business » General Business

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CRRA

Constant Relative Risk Aversion

Business » General Business

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SAHARA

Symmetric Asymptotic Hyperbolic Absolute Risk Aversion

Miscellaneous » Unclassified

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IRRA

Increasing Relative Risk Aversion

Miscellaneous » Unclassified

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DARA

Decreasing Absolute Risk Aversion

Miscellaneous » Unclassified

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RAF

Risk Aversion Factor

Miscellaneous » Unclassified

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CARA

Constant Absolute Risk Aversion

Miscellaneous » Unclassified

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DRRA

Decreasing Relative Risk Aversion

Miscellaneous » Unclassified

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What does risk aversion mean?

Risk aversion
In economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even if the average outcome of the latter is equal to or higher in monetary value than the more certain outcome. Risk aversion explains the inclination to agree to a situation with a more predictable, but possibly lower payoff, rather than another situation with a highly unpredictable, but possibly higher payoff. For example, a risk-averse investor might choose to put their money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value.

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