Risk-Loving


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Risk-Loving

Describing an investor who is willing to take big risks to increase the potential return on investments. For example, a risk loving investor 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 a secured bond issued by a well known and widely trusted company. Critics maintain that risk loving investors accept lower returns for their risk and, as such, are not investing efficiently. See also: Markowitz efficient portfolio.
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That's not to say we think it is going to happen, but more that if it did happen it would have the potential to make a big mess of risk-loving portfolios.
But, while turbulent times may set the stage for transformational leaders, it does not follow that bold and risk-loving leaders are always best suited to address the crises that define such periods.
Incredibly, someone has trawled the furthermost reaches of the bare cupboard to find enough spare change to dig holes in all the roads surrounding the Millennium Stadium, home to some events or other, and fill them with the sensor-operated bollards more commonly seen punching through the undersides of risk-loving drivers' cars in Youtube clips.
Since then, other countries have stepped up to provide Greece with energy commodities on a tab, but apparently only the most risk-loving companies within those nations are taking the lead.
So lotteries have a negative expected return for bettors, and, according to economic theory, only risk-loving agents could buy negative expected return assets.
The logic behind this test for risk aversion is that only risk-loving subjects would choose lottery B in the first row, and only risk-averse subjects would choose lottery A in the second-to-last row.
In addition, the banks' risk-loving casino operations need to be carved out and left to fend for themselves with no state support if their risky behaviour leads to yet another collapse.
It's time for risk-loving gamblers to take a moral lead in this namby-pamby nation of ours.
I find that spouse quality, in terms of education and other measurable traits, is generally lower for more risk averse men than for more risk-loving men.
This is the best way to sum up the steady recovery we have been seeing in so many different risk-loving assets.
The new adventure is set some 13 years later, with the risk-loving couple living in comfort on an English country estate.
Risk aversion by self-interested managers is not necessarily bad if it offsets the risk-loving incentives created by deposit insurance, but excessive costs are wasteful.