Sprenkle then argued that this expected value would be a warrant's value to an investor only if the investor was indifferent to risk or "risk neutral." To get a sense of what this means, imagine being offered a fair bet with a 50 percent chance of winning $1,000 and a 50 percent chance of losing $1,000, and thus an expected value of zero. If you would require to be paid to take on such a bet you are "risk averse"; if you would pay to take it on you are "risk seeking"; if you would take it on without inducement, but without being prepared to pay to do so, you are "risk neutral." A risky investment is worth exactly the expected value of its payoff only to a risk-neutral investor. It is worth less than that to a risk-averse investor, and more than that to a risk-seeking one.

Donald MacKenzie, An Engine, Not a Camera, loc. 534