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PRM I.A.1 - Risk and Risk Aversion > I.A.1.6.2 Estimating Risk Tolerance > Flashcards

I.A.1.6.2 Estimating Risk Tolerance Flashcards

1
Q

Coefficient of risk tolerance λ

A

approximately the value of the pay-off x for wich the decision maker is indifferent between taking the gamble or abandoning it.

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2
Q

Example on P. 56

A
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PRM I.A.1 - Risk and Risk Aversion (15 decks)

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