Risk Neutral

In economics and finance, risk neutral behavior is between risk aversion and risk seeking. If offered either €50 or a 50% chance of each of €100 and nothing, a risk neutral person would have no preference between the two options. In contrast, a risk averse person presented with these options would accept some amount less than €50 in preference to the risky option, while a risk seeking person would accept a less than 50% chance of €100 in preference to the sure €50.

Read more about Risk Neutral:  Theory of The Firm, Portfolio Theory, The Risk Neutral Utility Function

Famous quotes containing the words risk and/or neutral:

    I’m a very smart guy. I haven’t a feeling or a scruple in the world. All I have the itch for is money. I am so money greedy that for twenty-five bucks a day and expenses, mostly gasoline and whisky, I do my thinking myself, what there is of it; I risk my whole future, the hatred of the cops ... I dodge bullets and eat saps, and say thank you very much, if you have any more trouble, I hope you’ll think of me, I’ll just leave one of my cards in case anything comes up.
    Raymond Chandler (1888–1959)

    I feel the carousel starting slowly
    And going faster and faster: desk, papers, books,
    Photographs of friends, the window and the trees
    Merging in one neutral band that surrounds
    Me on all sides, everywhere I look.
    John Ashbery (b. 1927)