Before Attempting to measure risk aversion, following two factors should be considered: 1 ) Estimating probabilities: It includes measuring the future events based on their possibility of occurrence. generally, the Probabilities are assigned based on past experiences. 2) Life tables and estimates: it includes the estimation of the amount of risk undertaken by the investors in their previous investment. By looking at their investment history and analyzing behavior, this table can be prepared. Solution Before Attempting to measure risk aversion, following two factors should be considered: 1 ) Estimating probabilities: It includes measuring the future events based on their possibility of occurrence. generally, the Probabilities are assigned based on past experiences. 2) Life tables and estimates: it includes the estimation of the amount of risk undertaken by the investors in their previous investment. By looking at their investment history and analyzing behavior, this table can be prepared..