Risk aversion coefficient / Fundamentals of investments / Episode 7

In this tutorial, we explain the Arrow-Pratt coefficients of absolute risk aversion and relative risk aversion with practical examples. For a detailed lesson on the risk aversion coefficient and solution to the "test your learning exercise", see: https://initialreturn.com/risk-aversi... You might enjoy our tutorial on risk preferences as well:    • Understanding risk preferences / Fundament...   00:00 Intro 00:31 Utility of wealth 02:32 Absolute risk aversion 09:05 Relative risk aversion 12:46 Test your learning Enjoying our content? Become a member for exclusive videos & posts and early access to upcoming content:    / @initialreturn   Click the link below to subscribe to our channel:    / @initialreturn   You can also follow us on X (Twitter): https://x.com/initial_return And, here are our official Facebook, Instagram, and Pinterest pages:   / initialreturn     / initialreturn     / initialreturn   And, visit our website for free courses, tutorials, and more: https://www.initialreturn.com/ #utilitytheory #decisionmaking #investments