What is risk averse?
A person who prefers a certain given income to a risky income with the same expected value. A person is considered risk averse if they have a diminishing marginal utility of income. The use of insurance demonstrates risk aversive behavior.
Your Answer
DISCLAIMER
Paked and the contributors are not responsible for any errors contained and are
not liable for any damages resulting from the use of this material.
Disclaimer
| 