An individual is risk neutral if her utility curve for money is
Answers
Answered by
5
Explanation:
A person is called risk neutral, if he is indifferent between a certain given income and an uncertain income with the same expected value. An individual will be risk neutral if his marginal utility of money income remains constant with the increase in his money
Answered by
1
Answer:
Risk neutral is a concept used in both game theory studies and in finance. It refers to a mindset where an individual is indifferent to risk when making an investment decision. ... A person with a risk-neutral approach simply doesn't focus on the risk--regardless of whether or not that is an ill-advised thing to do.
Similar questions
India Languages,
3 months ago
Business Studies,
3 months ago
English,
6 months ago
Social Sciences,
6 months ago
Math,
11 months ago
Physics,
11 months ago