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What risk aversion?

By Lauren Foster

Published: March 26 2009 12:59 | Last updated: March 26 2009 12:59

How much money are you willing to put at risk of loss in the quest for incremental gain?

For Daniel Kahneman, Nobel laureate and emeritus professor of psychology at Princeton, and Andrew Rosenfield, chief executive of Guggenheim Investment Advisors, this question is central to managing money for the ultra-wealthy. After all, understanding how risk is framed can affect how clients deal with that risk.

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