Risk-Loving

(redirected from Risk-Seeking)
Also found in: Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
Terrorists also should be considered as subject to clouded objectives due to irrational visceral factors; for example, in anger, agents become risk-seeking (comparable to road rage).
However, under prospect theory, while investors are risk-averse in the domain of gains, they exhibit risk-seeking behavior in the domain of losses.
Perhaps, attractive returns spurred investors to change their preferences from risk-aversion to risk-seeking.
While the collapse in oil prices should provide a substantial boost to real incomes in 2015, presently it has added to fears about the global growth outlook, prompting a modest pause in investors risk-seeking run.
Dr Dennis Lendrem of Newcastle University said: "According to 'male idiot theory' (MIT) many of the differences in risk-seeking behaviour, emergency department admissions and mortality may be explained by the observation that men are idiots and idiots do stupid things.
Eisenmann (2002) does find that CEOs given equity ownership are more risk-seeking while those with no ownership are risk-averse.
Antisocial or risk-seeking behaviour may be associated with an imbalance in this network.
The strong picture has occurred despite many factors pointing to further weakness in bond prices such as: the first interest rate rises in the US and UK looming; reasonable signs of normalisation in the US and UK economies despite weak weather-impacted US GDP in the first quarter; some expectations pointing to inflation bottoming out in the US; continued risk-seeking appetite from investors, potentially reducing the demand for "risk-free" assets; and the tapering of QE reducing demand for US Treasuries.
Both Asian and global investors are seeking to invest in hedge funds as a risk-reducing [strategy] for their portfolio, rather than risk-seeking.
To ensure that the effect wasn't unique to American culture, the team also assessed perceptions of risk-seeking behavior among men on the Fijian island, where one of Fessler's graduate students happened to be conducting research at the time.
Stability begets its own demise because stability leads to progressively more risk-seeking behavior, notably with debt," says Paul McCulley, chairperson of the Global Interdependence Center Society of Fellows.
Even though the company has not disclosed any details yet, it feels to me that this could be a high yield offering targeting risk-seeking investors," said Joice Mathew, head of research at United Securities in Oman.