Lumifer comments on What are the most common and important trade-offs that decision makers face? - Less Wrong

10 Post author: Andy_McKenzie 03 November 2014 05:03AM

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Comment author: Lumifer 04 November 2014 02:55:31AM *  1 point [-]

Come to think of it, "Risk vs Reward" is oddly-worded.

That's because there ain't no such thing :-) there is no "vs" there.

People usually talk about risk/reward ratios. The trade-off is between a larger reward with more uncertainty and a lower reward with less uncertainty. Your preferences in this trade-off are often described as risk aversion.