--%>

Describe risk aversion

Describe risk aversion?
Risk aversion is the tendency to ignore additional risk. Risk-averse people will ignore risk if they can, unless they attain additional compensation for letting that risk. In finance, the added compensation is a higher expected rate of return.

   Related Questions in Finance Basics

  • Q : Define the term State Fiscal Year

    Define the term State Fiscal Year: This is the period beginning from July 1 and continuing through the subsequent June 30.

  • Q : Assignments i want to write final state

    i want to write final state report. My state is Texas.

  • Q : Law of rising opportunity costs Normal

    Normal 0 false false

  • Q : What is Availability Period

    Availability Period: The time period throughout which an appropriation might be encumbered (that is, committed for expenditure), generally specified by the law making the appropriation. When no particular time is given in financial legislation, the pe

  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

  • Q : What is Debt Service Debt Service : The

    Debt Service: The amount (sum) of money needed to pay interest on exceptional bonds and the principal of maturing bonds.

  • Q : What is Finance Conversion Code listing

    Finance Conversion Code (FCC) Listing: This is a listing distributed by the State Controller's Office to the departments each spring, that is based on departmental coding updates, will state how the salaries and wages detail will be d

  • Q : How long do business cycles remain

    Normal 0 false false

  • Q : What is Revenue Anticipation Notes

    Revenue Anticipation Notes (RANs): The cash management tool usually used to remove cash flow imbalances in the General Fund in a given fiscal year. The RANs are not a budget deficit-financing tool.

  • Q : What is Abolishment of Fund Abolishment

    Abolishment of Fund: It is a closure of fund pursuant to the operation of law. The funds might also be administratively eliminated by the Department of Finance with the concurrence of the State Controller’s Office. Whenever a sp