(redirected from Risk-Neutral Valuation Relationship)
RNVRRoyal Naval Volunteer Reserve
RNVRRisk-Neutral Valuation Relationship (finance)
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A different valuation equation can be constructed from an algebraic rearrangement of the above set of equations to yield what is known as the risk-neutral valuation relationship. Under the risk-neutral valuation, the actual probabilities are adjusted so that the mean return on every asset (risky and risk-free) becomes the risk-free rate.