What Does It Mean to Be Risk Averse

question 128

Essay

What does it mean to be risk averse?

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Definitions:

Function

An arrangement between inputs and a cadre of sanctioned outputs, in which every input is designated a specific output.

Inverse Function

An inverse function reverses the operation of the original function, mapping the output back to its input.

Function

An alliance between a compilation of inputs and a list of legitimate outputs, where it's mandated that each input is attributed to only one output.

Domain

All possible values of x for which a given function is defined.