Homogeneity ($f(ax)=a^{k}f(x)$)

Homogeneity of degree $k$ means that multiplying all arguments by a common positive factor $a$ multiplies the output by $a^k$. A homogeneous function is the function possessing this property. This is different from degree-one positive homogeneity; investment values with constant relative risk aversion utility usually have degree $1-R$.