Title |
Risk Aversion
|
Author |
Samuel L. Baker |
|
Category
|
Information and Uncertainty
|
Type |
Interactive Tutorial |
Description |
The interactive tutorial on risk calculated the expected values of some games and securities. It made a connection between the expected value of a security and its market price. This use of the expected value is based on the Law of Large Numbers, which is a statement about what happens when a game is repeated over and over and over again. If a game can be repeated many times, good luck and bad luck tend to wash out.
|
URL |
http://hadm.sph.sc.edu/COURSES/ECON/RiskA/RiskA.html |
