Absolute Risk aversion is defined as

Therefore, our rate of change in Absolute Risk Aversion is .

Attitude to Absolute Risk Aversion (ARA)	Definition As wealth Increases	Property
Increasing ARA	Hold fewer dollars in risky assets
Constant ARA	Hold same dollars in risky assets
Decreasing ARA	Hold more dollars in risky assets

Relative Risk Aversion is defined as

Therefore, our rate of change in Relative Risk Aversion is

Attitude to Absolute Risk Aversion (ARA)	Definition As wealth Increases	Property
Increasing RRA	Hold smaller percentage in risky assets
Constant RRA	Hold same percentage in risky assets
Decreasing RRA	Hold greater percentage in risky assets