I’m looking at Investors Utility Adjusted Return and in specific the Risk Aversion Score. I know there is a range for Risk Aversion score - Is it lower the number, more risk adverse? I’m trying to find it in the CFAI books with no luck
Lower value of risk aversion score actually means higher risk tolerance… see CFAI V3, bottom of p. 237. Think it’s because it’s measuring risk aversion… a low number means they’d prefer higher risk-adjusted returns, all things equal, because their utility is higher
thanks!