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Certainty equivalent

Business CentralisationCertificate of origin

certainty equivalent
amount of cash (or rate of return) that a decision maker would require with certaintyto make the recipient indifferent between this certain sum and a particular uncertain, riskysum.

 


CERTAINTY EQUIVALENT - An amount that would be accepted today (risk free) in lieu of a chance to receiv...
CERTAINTY EQUIVALENT (CE) - The amount of cash someone would require with certainty at a point in time ...

Certainty equivalent
An amount that would be accepted in lieu of a chance at a possible higher, but
uncertain, amount.
Changes in Financial Position ...

Certainty Equivalent Return
The certain (zero risk) return an investor would trade for a given (larger) return with an associated risk.

certainty equivalent: The amount of payoff (e.g. money or utility) that an agent would have to receive to be indifferent between that payoff and a given gamble is called that gamble's 'certainty equivalent'.

Certainty equivalents applet
A good example for a risk-controlling, yet utopian civilisation was written by Ian M. Banks in his science fiction Culture novels.
Risk is the name of a popular board game.

Certainty Equivalent Return
Certificate
Certificate of Accrual on Treasury Securities (CATS) ...

Certainty equivalent
Certificate of claim
Certificate of deposit (CD)
Certificate of deposit index
Certificate of deposit index (CODI Index)
Certificate of eligibility
Certificate of occupancy
Certificate of reasonable value (CRV) ...

This value is called the certainty equivalent. It is the lowest value that will compensate an individual for participating in a venture with uncertain outcome.

The risk-adjusted rate of return method penalizes risk by increasing the discount rate when calculating the Net Present Value (NPV), and the certainty equivalent approach does it by adjusting the numerators of the NPV formula, ...

Central Limit Theorem
Centralized cash flow management
Cents per share
CEO
CEO Confidence Survey
Certainty Equivalent
Certainty Equivalent Return
Certificate
Certificate of Accrual on Treasury Securities ...

A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.
Popular terms ...

Free checkwriting privileges offered with nonretirement accounts for select mutual funds.
Certainty equivalent ...

Risk-adjusted profitability
A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.

See: Systematic risk Risk-adjusted profitability A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.

See also: Expense, Expected return, Risk-free asset, Risk premium, Systematic risk

Business CentralisationCertificate of origin

 
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