Risk adverse manifests itself as opposition to risky activities by an individual. It means an attitude to risk, which comes to the non-recognition of its values and roles. Risk averse is featuring characteristic of Homoeconomicus, which refers to the mental power of man to create effective means of resistance to the risk in order to raise profits or gain another benefit. Economists suppose that most of people tend to adverse the risks. At the same time some individuals are rather neutral to risks. The risk neutrality means that the marginal utility is constant, so a person disregards whether he ...
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