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Cataloged Resource Summary

 

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
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