Indifference price

ID: indifference-price

Indifference price refers to the price at which an individual or an entity is indifferent between holding an asset and not holding it, meaning that the individual derives the same level of utility or satisfaction from both options. In a financial context, this concept is often applied to situations involving risky assets. For example, an investor might determine an indifference price for a stock based on their risk preferences, expected returns, and overall portfolio construction.

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