certainty equivalent

noun

The guaranteed amount of money that an investor regards as equally desirable as a risky asset.

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Meanings

nouncertainty equivalent (plural certainty equivalents)

plural certainty equivalents

  1. businessThe guaranteed amount of money that an investor regards as equally desirable as a risky asset.
Cite this entry
APA

certainty equivalent. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/certainty%20equivalent

MLA

“certainty equivalent.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/certainty%20equivalent. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “certainty equivalent,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/certainty%20equivalent.

Source: certainty equivalent on Wiktionary, CC BY-SA 4.0.