The concept that an investor makes investment choices based on the risk and reward potential of investments, expecting greater return for greater risk, and seeking investments that offer the highest return for the least amount of risk.
Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk.
Investing conservatively. Also, wanting to avoid risk unless adequately compensated for it; the attitude of most investors. see also risk tolerance.
An investor who prefers lower risk investments; a conservative investor.
Refers to the assumption that rational investors will choose the security with the least risk if they can maintain the same return. As the level of risk goes up, so must the expected return on the investment.
Someone who adopts a conservative approach with their money is considered ‘risk-averse'.
Descriptive term use for an investor unable or unwilling to accept the probability of losing capital.