What is loss asymmetry?
Recovering a loss requires a larger percentage gain than the loss itself: gain needed = 1 ÷ (1 − loss) − 1. A 50% loss needs a 100% gain; a 75% loss needs a 300% gain.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.