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Risk Averse

A description that an investor or broadly a market player is not willing to take risk, preferring outcomes with low...

Absolute Risk Aversion

A metric (risk aversion) that measures the absolute amount of money or resources an investor is willing to expose to...

Dominance Principle

Under the efficient-frontier framework, the assumption that investors are risk-averse, i.e., they prefer returns and distaste risks. In other words,...

Risk Adjustment

The adjustment/ premium (compensation or additional return) that is sought by risk-averse market participants for being exposed to the uncertainty,...

Risk Premium

The premium (compensation or additional return) that is sought by risk-averse market participants for being exposed to the uncertainty, engulfing,...