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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 {\displaystyle \$50} or a 50 % {\displaystyle 50\%} chance each of $ 100 {\displaystyle \$100} and $ 0 {\displaystyle \$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.