Risk neutral is a mindset where an investor is indifferent to risk when making an investment decision. The risk-neutral investor places himself in the middle of the risk spectrum, represented by risk-seeking investors at one end and risk-averse investors at the other. Risk-neutral measures have extensive application in the pricing of derivatives. BREAKING DOWN 'Risk Neutral' Risk neutral is a term used to describe the mental framework of a person when deciding where to allocate money.
It is the most commonly used metric system. Metric System - SI is a specific metric system, which is a decimal system of measurement. Examples of two common forms of the metric system are the MKS system (meter, kilogram, second as base units) and CGS system (centimeter, gram, and second as base units).
Devised by Gabriel Mouton, a mathematician, the system comprises of three base units, namely meter, gram and liter, that are determined accurately by using certain standards as a reference. The older metric system, called the CGS system, is based on seconds, grams and centimeters. In comparison, the SI system of measurement was established officially in 1960 and is similar to the MKS system, a part of the metric system that consists of meter, kilogram and seconds as the three base units that measure length, mass and time.