Risk-Averse

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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 Aversion

The subjective tendency of investors to avoid unnecessary risk. It is subjective because different investors have different definitions of unnecessary. An investor seeking a large return is likely to see more risk as necessary, while one who only wants a small return would find such an investment strategy reckless. However, most rational economic actors are sufficiently risk averse such that, given two investments with the same return and different levels of risk, they would choose the less risky investment.

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Baa Baa3 BB BBB- Bond Strategy Efficient diversification Fair Game Fund Overlap Nervous Nellie Odd-Lotter Optimal Portfolio Protective Stop Regret Theory Retail Investors Risk Aversion Safety Cushion Security Ratings Separation Property Wider-Range Securities			dollar fell to the upper 92 yen range Friday in Tokyo as investors became increasingly risk-averse, shifting their money to the relative safety of the yen. Dollar drops to upper 92 yen zone in Tokyo as investors grow risk ... by Japan Weekly Monitor Byline: BILL GLEESON HOME emergency repair group Homeserve said its army of older, risk-averse customers would help protect the business from a consumer spending slowdown. Older customers help home repair group; In association with BUSINESS ... by Daily Post (Liverpool, England) Our `best performing' regional office was neither particularly risk-averse or risk taking but their individual risk perceptions were all very alike. Common sense approach to risk helps create a successful business by The Journal (Newcastle, England)			Risk Classes Risk controlled arbitrage Risk Factor Risk Graph Risk Hedge Risk Indexes Risk Lover risk management Risk Manager Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate Risk-Adjusted Performance Risk-adjusted profitability Risk-Adjusted Return Risk-Averse Risk-based capital ratio risk-based capital requirement Risk-Free Risk-Free Asset Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Risk-Loving Risk-Neutral Risk-Prone Risk-Return Trade-Off Risk-Return Tradeoff Risk-Reward Ratio Risk-Weighted Assets Riskless Arbitrage Riskless Investment Riskless or Risk-Free Asset Riskless Rate Riskless rate of return Riskless Transaction Risks and Opportunities Risky Asset Risky Operation Risparmiare			Risk, Hazard and Value Evaluation Risk, Intelligence and Analysis Team Risk, Prevention and Health Behavior Risk, Research and Liaison Team Risk, Systematic Risk, Unsystematic Risk-Adjusted Complication Index Risk-adjusted discount rate Risk-adjusted discount rate Risk-Adjusted Discount Rates Risk-Adjusted Fair Value Risk-Adjusted Monitoring of Outcomes Risk-Adjusted Mortality Index Risk-Adjusted Mortality Rate Risk-adjusted Net Present Value Risk-Adjusted Operative Mortality Risk-adjusted performance Risk-Adjusted Performances Risk-adjusted profitability Risk-Adjusted Readmissions Index Risk-adjusted return Risk-Adjusted Return On Assets Risk-Adjusted Return On Capital Risk-Adjusted Return On Capital Risk-Adjusted Return on Risk-Adjusted Capital Risk-Adjusted Returns Risk-Averse Risk-aversion Risk-aversion Risk-Based Acquisition Management Risk-Based Asset Management Risk-Based Assurance and Acceptance risk-based audit approach Risk-Based Audit Framework Risk-Based Capital Risk-based capital ratio risk-based capital requirement Risk-Based Compliance Monitoring Programme Risk-Based Corrective Action Risk-Based Decision Analysis Risk-Based Disposal Approval Risk-Based End States Risk-Based Exposure Limit Risk-Based Haircuts Risk-Based Inspection Risk-Based Inspection and Maintenance Risk-based Inspection Guide Risk-Based Inspection Planning Risk-Based Land Management Risk-Based Performance Standards Risk-based pricing Risk-Based Process Safety

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