Certainty Equivalent

Discussion in 'CT8' started by Rajat gupta, Jul 31, 2018.

  1. Rajat gupta

    Rajat gupta Ton up Member

    Hi All,

    Can somebody please explain concept of certainty equivalent in layman terms? I found different interpretations in the course notes and difficult to explain in simple terms.

    Regards,
    Rajat
     
  2. rookie

    rookie Member

    I’ll say it how much a person is willing to pay to avoid uncertainty
     

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