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Risk-Averse
A description of an individual or entity that prefers to avoid risk, choosing safer options over potentially higher-reward alternatives.
Marginal Utility
The extra pleasure or benefit a person gains from consuming an additional unit of a product or service.
Risk Aversion
A preference for options with fewer risks and more predictable outcomes, often influencing investment and consumption behaviors.
Initial Wealth
The total value of all a person's assets minus liabilities at the beginning of a period of analysis or accounting.
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