risk aversion

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risk aversion

n
a strong disinclination to take risks
References in periodicals archive ?
equities are weaker amid elevated risk-aversion. The Dow is down 0.5%, S&P 500 is off 0.5% and the NASDAQ has fallen 0.6% in pre-market trading.
According to Sakpal, emerging market currencies have been rattled in 2018 as a series of events including a hawkish Fed and appreciating dollar, the China-US trade spat and higher oil prices have had almost all regional currencies heading for cover amid increased risk-aversion and capital flight.
The agent's cost of effort is given by C = (c/2)[e.sup.2] and she is assumed to have constant absolute risk-aversion (CARA) preferences with the utility function given by V = 1 - exp[- [lambda](w - (c/2) [e.sup.2])], where w represents the compensation and [lambda] is the Arrow-Pratt measure of the agent's absolute risk aversion.
Risk attitude was quantified using the number of safe choices (i.e., Option A) made by each participant, and I defined this variable as the risk-aversion index.
In this article, we fill this gap in the literature by eliciting risk-aversion measures for 75 countries, including 52 developing countries, from self-reports of personal well-being from the 2006 Gallup World Poll.
We employ a constant absolute risk aversion (CARA) utility function to capture a landowner's risk-aversion and calibrate the risk aversion parameter for each county by assuming that the landowner is willing to pay 10% of the standard deviation of the revenue from row crops to eliminate income risk (Babcock et al.
Concave utility functions are preferred because they reflect risk-aversion; that is, the utility of potential wealth increase does not compensate the risk or the utility of wealth loss.
Categorization of Risk Preferences Not Risk Averse Low Risk Aversion Answer to #3 A B Answer to #4 A A Answer to #5 A A Risk Preferences Risk seeking Risk aversion < 17% Medium Risk Aversion High Risk Aversion Answer to #3 B B Answer to #4 B B Answer to #5 A B Risk Preferences Risk aversion between Risk-aversion > 26% 17% and 26%
Donthu and Gilliland's (1996) risk-aversion scale and Griffin, Babin and Attaway's (1996) risk-attraction scales were adapted to driving situations.
In our analysis, other matches of target profit and downside risk, especially moderate risk-aversion combinations, are investigated as a supplement to the risk-aversion study.
The dollar's upside was limited in line with yen-buying against the euro on risk-aversion spurred by falls in the stock markets.
Traders use VIX as a measure of risk-aversion as higher volatilities for the S&P 500 implies higher expected risk.&nbsp;
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