The preference of investors for the less risky of investments with identical expected returns.... more on: Risk aversion
In decision making, the reluctance to choose an alternative that involves some risk.
Position adopted by investors who do not want to submit their money to a high risk.
the tendency to prefer certainty instead of risky outcomes, particularly in cases where actions may cause significant negative consequences.
is measurable inability to see and avoid regret - when this is done with perfect anticipation, risk aversion is 1, when randomly, risk aversion can rise as high as 4 on average. This is the number of birds in a bush you will pass up.
The degree of risk that an investor may wish to take for a given return target on his or her investment.
avoiding risk when all else is equal; choosing lower risk when alternative returns are equal, or choosing higher returns when alternative risks are equal.
To avoid the gamble, the patient will accept less than the expected value of the gamble.
The tendency to require a relatively high return in order to compensate for risk, or uncertainty, in the result. Risk averse investors will tend to settle for a relatively low- risk portfolio, where the return is more predictable.
An unwillingness to expose financial assets to loss conditions.
The general tendency to be afraid of taking risks even when they also carry substantial potential gain.
The degree of return an investor requires in order to compensate for risk, or uncertainty, in the result.
A dislike for risk. Generally investors are risk-averse. Their required rate of return varies with the level of risk--the higher the level of risk, the higher the required rate of return.
Term used to describe the tendency of an individual person to avoid risk.
Risk aversion is a concept in economics, finance, and psychology explaining the behaviour of consumers and investors under uncertainty. Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain but possibly lower expected payoff. The inverse of a person's risk aversion is sometimes called their risk tolerance.
