Examlex
The disadvantages associated with a proprietorship are similar to those under a partnership. One exception to this is the formal nature of the partnership agreement and the commitment of the partners' personal assets. As a result, partnerships do not have difficulty raising large amounts of capital.
Risk Averse
A risk-averse individual prefers certainty over uncertainty and would opt for a guaranteed outcome over a gamble with potentially higher, yet uncertain, rewards.
Expected Rate
Often refers to the anticipated rate of return on an investment or the expected growth rate of an economic variable.
Risk-Averse Investor
An individual who prefers lower returns with known risks rather than higher returns with unknown risks.
Variances
Variances measure the dispersion of a set of data points around their mean value, identifying how spread out the data points are.
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