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Risk-Averse

   Also found in: Wikipedia 0.03 sec.
Risk-averse
Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk.

Risk-Averse
Describing an investor who prefers securities with little or no risk. A risk-averse investor is prepared to accept a lower return in exchange for the knowledge that he/she is unlikely to lose his/her investment. For example, a risk-averse investor will choose to buy a Treasury security instead of a start-up stock. See also: Eat well, Sleep well.


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