Risk-neutral

Risk-neutral

Insensitive to risk.

Risk Neutral

A situation in which an investor effectively ignores risk in making investment decisions. Given two investments with different levels of riskiness, a risk neutral investor considers only the expected return from each investment. As such, being risk neutral differs significantly from both risk aversion and risk seeking.
Mentioned in ?
References in periodicals archive ?
If, in the agency's opinion the amendment is risk-neutral from a rating perspective, Fitch may decline to comment.
Uncertainty over irreversible consequences warrants abandonment of risk-neutral investment policies in the public sector [Arrow & Fisher, 1974].
Hence, we determine the fair mortality and expense fees in a risk-neutral world.
2 percent had risk-neutral personality scores while only 5.
People have been adjusting their positions to be as much as possible event risk-neutral on the day," said Marco Baggioli, Chief Operating Officer at ADS Securities in London.
Risk-averse workers, subject to productivity shocks, are matched with risk-neutral employers.
We also studied a decomposition of the yield curve and found that the lack of significant effect on Treasury yields was a result of the offsetting effects of surprises on the term premium and risk-neutral yield.
We describe first a LS distribution with three parameters based method to infer the implied risk-neutral probability density (RND).
Early studies of this issue were based on the assumption that supply chain agents were risk-neutral [2, 11, 13, 14, 19], and few papers considered agents' risk preference (such as loss aversion).
First, how does a risk-neutral seller adjust undisclosed reservation prices in sequential auctions?
He finds that the risk-neutral probability of the jump is a predictor of the ultimate outcome, even early on in the negotiation process.
However the expected value is calculated with regard to risk-neutral measure instead of the real probabilities.