certainty equivalent
Definition
Return on a risky event (such as a future income) stated in terms of a risk-free event (such as a cash-payment). It is the lowest cash amount that will compensate an investor for participating in a venture with uncertain outcome. Certainty equivalent varies with an individual's attitude towards risk. Also called certain equivalent.
certainty equivalent is in the Disaster Planning & Risk Management and Investing subjects.
certainty equivalent appears in the definition of the following term: certain equivalent
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