Examlex
Complete the following table.
Risk Averse
A description of an individual or entity that prefers to avoid risk and would choose a certain outcome over a gamble with a potentially higher, but uncertain, return.
Portfolio
A group of investment vehicles comprising stocks, bonds, commodities, as well as cash and its equivalents, together with mutual funds and ETFs.
Adverse Selection
Adverse selection refers to a situation where sellers have information that buyers do not, or vice versa, about some aspect of product quality.
Utility Function
A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or utility.
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