Risk Averse describes an investor who has a low level of tolerance to possible loss of Principal through investing. This investor is willing to accept lower levels of expected return in order to avoid possible investment losses.
In the context of PATH analyses, "risk averse" corresponds to a management action that minimizes the risk of not meeting recovery and survival criteria, an action that succeeds in satisfying performance criteria over the widest range of assumptions.
An investor is said to be risk averse if, when presented with two investments with equal expected returns, the investor chooses the investment that is less risky. Risk averse is the opposite of risk loving.
An attitude towards risk that generally leads to the preference of an investment with lower risks over an investment with higher risks and higher potential returns. For example, a risk-averse investor may prefer an investment with a guaranteed return of 100 to an investment with a 50-50 chance of a return of 200 or a return of 0. hareholder — An investor who owns a company`s common and/or preferred stocks.
A risk-averse investor is one who, when faced with two investments with the same expected return but two different risks, prefers the one with the lower risk.
A person who prefers investments characterised by low levels of risk. Opposite of Risk taker. Français: Répugnance au risque Español: Agente económico que rehuye el riesgo
Said of an investor who, given the same return and different risk alternatives, will choose the security with the least amount of risk. See: Risk; Risk/Reward Ratio
Describes an investor who, when faced with two investments with a similar expected return (but different risks), will prefer the one with the lower risk.