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- Dictionaryrisk-averse
adjective
- 1. disinclined or reluctant to take risks: "risk-averse investors"
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Apr 15, 2024 · Risk aversion is the tendency to avoid risk. The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return.
RISK-AVERSE definition: 1. unwilling to take risks or wanting to avoid risks as much as possible: 2. unwilling to take…. Learn more.
What is Risk Averse? Someone who is risk averse has the characteristic or trait of preferring avoiding loss over making a gain.
Jul 1, 2022 · Definition. Risk-averse investors aim to preserve capital with more conservative investment choices. Learn how they are less willing to risk losses for potentially greater returns.
Jun 23, 2022 · Risk-averse investors typically seek to preserve capital rather than receive above average returns. Learn more about risk aversion, and find examples of risk-averse investments.
Definition of risk-averse adjective in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.
Oct 1, 2019 · Risk averse is an oft-cited assumption in finance that an investor will always choose the least risky alternative, all things being equal. How Does Risk Averse Work? Modern portfolio theory (MPT), which is the theory behind why diversification works, relies on the assumption that investors are risk averse.
What is Risk Aversion? Risk aversion refers to the tendency of an economic agent to strictly prefer certainty to uncertainty. An economic agent exhibiting risk aversion is said to be risk averse. Formally, a risk averse agent strictly prefers the expected value of a gamble to the gamble itself.
not willing to do something if it is possible that something bad could happen as a result We live in a risk-averse culture. In business you cannot be innovative and risk-averse at the same time.
Apr 19, 2024 · Key Takeaways. Risk aversion refers to a preference for minimizing or avoiding risk in investment or decision-making situations. Risk-averse individuals prioritize capital preservation and are willing to accept lower potential returns in exchange for lower levels of risk.
