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
Example sentencesExamples
A risk-neutral company is spreading this risk for a risk-averse individual.
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.
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.
Governments are regarded as being in a position to be more risk neutral than private sector firms.
It is a high-yielding currency, so it will attract money that has nowhere better to go in a risk-neutral or positive environment.
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.
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.
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.
Definition of risk-neutral in US English:
risk-neutral
adjective
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
Example sentencesExamples
He is risk-neutral if he is indifferent between a gamble and certain pay-off equalling the expected value of the gamble.
If you were truly risk-neutral, you would never buy insurance.
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.
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.
Governments are regarded as being in a position to be more risk neutral than private sector firms.
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.
When public sector salaries are exposed to priced risks, expected wages grow more slowly under the risk-neutral measure than under the objective measure.
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.
A risk-neutral company is spreading this risk for a risk-averse individual.
It is a high-yielding currency, so it will attract money that has nowhere better to go in a risk-neutral or positive environment.