risk aversion

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Related to Risk tolerant: Risk averse

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

risk aversion

The tendency of investors to avoid risky investments. Thus, if two investments offer the same expected yield but have different risk characteristics, investors will choose the one with the lowest variability in returns. If investors are risk averse, higher-risk investments must offer higher expected yields. Otherwise, they will not be competitive with the less risky investments.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

risk aversion

the tendency for managers, consumers and other decision-makers to avoid undertaking risks and to choose less risky alternatives. See RISK PREMIUM.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

risk aversion

the tendency for managers, consumers and other decision makers to avoid undertaking risks and to choose less risky alternatives. See RISK PREMIUM.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Those who hypothetically allocated more money to shares and less money to term deposits were more likely to be risk tolerant. Those who actually owned shares or unit trusts were also more risk tolerant in both samples, although ownership of a term deposit was not associated with risk attitude.
They have a very high density of health care, the market is risk tolerant and they kind of like innovation down there."
Investor sentiment switched from risk tolerant to risk averse as the sell-off fed on itself.
Commodity and Foreign Exchange trading continue to generate impressive returns for risk tolerant investors.
"The rapid development witnessed in the technology and media industries in Dubai and the wider Middle East echoes the risk tolerant culture which has embodied pioneering success in Silicon Valley," said Bridges.
While the survey results suggest CIOs are willing to take intelligent risks with IT investments (71% class themselves as risk tolerant, not risk averse), this appetite for investment does not seem to be reflected in their current portfolios of projects.
Gulf-based individual investors surveyed in the UAE, Qatar and Kuwait ranked as the world's most risk tolerant investor group, according to a global survey published by Natixis Global Asset Management, one of the largest asset management companies in the world.
In the far right cluster of bars, the stair-step pattern is reversed, with 27% of the general population rating itself in the highly risk tolerant group (a rating of eight or above) and 44% of nonfarm business owners rating themselves similarly.
Financial advisers and retail investors in the GCC are becoming increasingly risk tolerant and optimistic despite local and global economic volatility, regional regulatory uncertainties and the prevailing geopolitical situation.
MANAMA: Financial advisers and retail investors in the GCC are becoming increasingly risk tolerant and optimistic despite local and global economic volatility, regional regulatory uncertainties and the prevailing geopolitical situation.
Over the past ten years, the college has become nationally-known as an institution with a "risk tolerant change-oriented culture" and a signature set of student support programs that produce impressive performance outcomes for Chaffey students.