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Risk Attitude

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Risk Attitude

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • Author
    Posts
  • September 5, 2015 at 12:23 pm #269921
    acaqub
    Participant
    • Topics: 32
    • Replies: 88
    • ☆☆

    Dear John,

    Hello!

    There are three attitudes towards risk: risk averse, risk neutral and risk seeker.

    I know EV is for risk neutral people as EV is the weighted average of potential future outcome.

    Should I assume that Maximax is for risk seekers and the Minimax regret is for risk averse investors? In addition, is the Maximin is for risk neutral investors as same as EV?

    Thanks a lot!

    September 5, 2015 at 1:39 pm #269933
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54809
    • ☆☆☆☆☆

    This is all stressed in the lecture on decision making under uncertainty.

    Maximin is risk averse.

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