Risk neutral — In economics, risk neutral behavior is in between risk aversion and risk seeking. If offered either 50 EUR or a 50% chance of 100 EUR, a risk averse person will take the 50 EUR, a risk seeking person will take the 50% chance of 100 EUR, and a… … 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-Neutral Probabilities — Probabilities of future outcomes adjusted for risk, which are then used to compute expected asset values. The benefit of this risk neutral pricing approach is that the once the risk neutral probabilities are calculated, they can be used to price… … Investment dictionary
Risk-Neutral Measures — A theoretical measure of probability derived from the assumption that the current value of financial assets is equal to their expected payoffs in the future discounted at the risk free rate. Another assumption made is that there is an absence of… … Investment dictionary
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 neutral — Insensitive to risk. The New York Times Financial Glossary … Financial and business terms
risk-neutral — Insensitive to risk. Bloomberg Financial Dictionary … Financial and business terms
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 aversion — is a concept in psychology, economics, and finance, based on the behavior of humans (especially consumers and investors) while exposed to uncertainty. Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather … Wikipedia
Risk premium — A risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk free asset, in order to induce an individual to hold the risky asset rather than the risk free asset. Thus it is… … Wikipedia
