Homogeneity
= Homogeneity
{title2=$f(ax)=a^k f(x)$}
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 $1-R$.