Examlex
Profitability ratios are frequently used as a basis for evaluating management's operating effectiveness.
Utility Function
A mathematical representation of how a consumer derives satisfaction from consuming goods or services, showing their preferences.
Aversion to Risk
The inclination to avoid taking risks, preferring safer or more certain outcomes over uncertain ones.
Risk Neutral
An investor who finds the level of risk irrelevant and considers only the expected return of risk prospects.
Expected Return
The weighted average of all possible returns for a given investment, based on probabilities of outcomes.
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