where x and t are both measured in dollars (x is wealth OR increment to wealth) and t is referred to as the

RISK TOLERANCE.

Risk tolerance is the reciprocal of the risk aversion coefficient. Thus when risk tolerance is small, risk aversion is high; and when risk tolerance is large, risk aversion is low.

For some applications, such as portfolio optimization, x is interpreted as a fraction or percent of fund size, in which case the risk tolerance is also a percent.