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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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Term | Definition | Rating |
---|---|---|
RRA | Relative Risk Aversion | |
HARA | Hyperbolic Absolute Risk Aversion | |
CPRA | Constant Proportional Risk Aversion | |
CRRA | Constant Relative Risk Aversion | |
SAHARA | Symmetric Asymptotic Hyperbolic Absolute Risk Aversion | |
IRRA | Increasing Relative Risk Aversion | |
DARA | Decreasing Absolute Risk Aversion | |
RAF | Risk Aversion Factor | |
CARA | Constant Absolute Risk Aversion | |
DRRA | Decreasing Relative Risk Aversion |
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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"risk aversion." Abbreviations.com. STANDS4 LLC, 2024. Web. 30 Apr. 2024. <https://www.abbreviations.com/risk%20aversion>.
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