Does this make sense? I got tricked on this one.
I know lower loss aversion is lower tolerance for risk. But not sure why a low risk aversion coefficient is the opposite.
Yes.
Let’s hope that you’re over that.
It isn’t what we don’t know that gives us trouble; it’s what we know that ain’t so.
- Will Rogers
Lower loss aversion implies lower risk aversion, or _ higher _ risk tolerance.
Wow, I just got that.
More risk averse = lower risk tolerance
Less risk averse = higher risk tolerance
Thank Mr. Rogers.