ARA RRA for a risk averse investor

Discussion in 'CM2' started by msm, Apr 13, 2024.

  1. msm

    msm Keen member

    Does a risk averse investor generally show Increasing ARA and constant RRA? or what is the general case? I am trying to know so I can use it to help conclude what type of risk aversion the investor is showing.
    Similarly, is there a general case answer for risk neutral and risk seeking investors please?
    Or can you not generalise?
    Thanks
     

Share This Page