One of the mysteries of the English language finally explained.
Indifferent to or balanced with respect to financial risk.‘the amount of volatility is undesirable for risk-neutral and risk-averse investors’‘risk-neutral positions are designed to make money whether the markets go up or down’
- ‘Efficient capital markets theory implies that stock prices should be much less volatile than actually observed, reflecting an unrealistic assumption that investors are risk neutral.’
- ‘Results show that while conventional cotton maximizes utility in a risk-neutral situation, transgenic cotton varieties entered into the optimal solution as higher levels of risk aversion were considered.’
- ‘A risk-neutral company is spreading this risk for a risk-averse individual.’
- ‘The company is exploring other tools for future prediction, including a design for decision insurance that lets risk-averse business managers be risk-neutral when deciding the future directions they want to pursue.’
- ‘It is a high-yielding currency, so it will attract money that has nowhere better to go in a risk-neutral or positive environment.’
- ‘Governments are regarded as being in a position to be more risk neutral than private sector firms.’
- ‘When public sector salaries are exposed to priced risks, expected wages grow more slowly under the risk-neutral measure than under the objective measure.’
- ‘If you were truly risk-neutral, you would never buy insurance.’
- ‘Risk-neutral farmers appear indifferent whether access to technology requires paying $30 per acre or the baseline $10 per acre if other attributes stay the same.’
- ‘He is risk-neutral if he is indifferent between a gamble and certain pay-off equalling the expected value of the gamble.’
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