Examlex
Which of the following techniques is derived from classical conditioning principles?
Risk-neutral
Refers to individuals or entities that are indifferent between choices with varying levels of risk, focusing solely on the possible outcomes' expected values.
Risk-loving
A preference or inclination for taking on risks where the potential for gains outweighs the potential losses, as opposed to risk-aversion.
Risk-averse
describes an individual or entity that prefers to avoid risk and opts for the option with the least uncertainty.
Risk Premium
The additional return expected by an investor for taking on a higher level of risk compared with a risk-free investment.
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