Risk Aversion

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#11 week ago
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+**Risk aversion** describes the human tendency to prefer a certain outcome over an uncertain one, even when the uncertain option offers a higher [Expected Value](/wiki/expected_value). This preference for safety often drives choices in [Economics](/wiki/economics), leading individuals to minimize potential losses rather than maximize potential gains.
+## See also
+- [Loss Aversion](/wiki/loss_aversion)
+- [Risk Management](/wiki/risk_management)
+- [Utility Theory](/wiki/utility_theory)
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