Risk lover

Risk lover

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

Risk Lover

An investor who is willing to take big risks to increase the potential return on investments. For example, a risk lover would be more likely to invest in the IPO of a company with a new and exciting product about which little is known, than to invest in the secured bond issued by a company everyone knows and trusts. Critics maintain that risk lovers accept lower returns for their risk and, as such, are not investing efficiently. See also: Markowitz efficient portfolio.
References in periodicals archive ?
On the other hand, if the individuals' risk index is near zero then this individual is considered a risk lover since relatively few precautions are taken.
TABLE III Impact of Seat Belt Use on Number of Tickets Pooled Estimates Explanatory Variables Coefficients t-statistics Risk Lover Group -.
As is illustrated, the overall significance of the individual regressions for the risk lover and risk averse groups are markedly improved.
Likewise, risk preferrers or risk lovers would be relatively strong candidates for compensating behavior.
As is illustrated, risk lovers have received more moving violations than the other groups.

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