Bilateral netting reduces a variety of this quantity associated with counterparties.
Bilateral netting reduces a variety of this quantity associated with counterparties. This quantity gives rise to twoÂ­moment, or "meanÂ­variance" modelling. One form of this quantity is plotted on the xÂ­axis to produce the market line in the capital asset pricing model; that form of it is symbolized "beta." Many investors purchase index funds thinking that they have lower values for this quantity than single stocks. Nonzero values for this quantity caused a discrepancy between actual and expected (*) utility in the St. Petersburg paradox formulated by Nicolas Bernoulli. The ArrowÂ–Pratt model quantifies how much people try to avoid it. OverÂ­linked markets give rise to the "systemic" type of it through contagion. This quantity is reduced via "spreading," forinstance by diversifying one's investments. For 10 points, name this chance of losing money. 
Bilateral netting reduces a variety of this quantity associated with counterparties.
risk [accept uncertainty; accept volatility; prompt on "beta" until that's mentioned]