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Risk Lover

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Risk Lover
An investor who is willing to take on additional risk for an investment that has a low expected return.

Notes:
There is always a risk/return tradeoff when investing. Lower returns are usually associated with lower risk investments. Higher potential returns are associated with investments of higher risk as the investor would want to be compensated for taking the additional risk. Risk lovers, however, do not follow this scheme: they acquire investments of higher risk with a lower expected return.


Risk lover
A person willing to accept lower expected returns on prospects with higher amounts of risk.


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