<Table> <Tr> <Td> </Td> <Td> This article needs additional citations for verification . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . (December 2010) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> This article needs additional citations for verification . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . (December 2010) (Learn how and when to remove this template message) </Td> </Tr> <P> In economics and finance, risk neutral preferences are preferences that are neither risk averse nor risk seeking . A risk neutral party's decisions are not affected by the degree of uncertainty in a set of outcomes, so a risk neutral party is indifferent between choices with equal expected payoffs even if one choice is riskier . For example, if offered either $50 or a 50% chance each of $100 and $0, a risk neutral person would have no preference . In contrast, a risk averse person would prefer the first offer, while a risk seeking person would prefer the second . </P>

A risk neutral decision maker will have a linear utility function