The amount that a risk averse person requires to take on risk is called:

Name: The amount that a risk averse person requires to take on risk is called:
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Risk premium is the additional return that a risk averse person requires in order to take on risk. It is the compensation that the person needs to be willing to accept the possibility of experiencing a loss. It is also used in finance to refer to the difference between the expected return on a risky asset and the risk-free rate of return.

The Amount That a Risk Averse Person Requires to Take