risk aversion

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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 ?
"The median loan-to-value (LTV) ratio moved from 67.7 to 69.6 between March 2015 and March 2019," said the Residential Asset Price Monitoring Survey adding that "banks have become increasingly risk-tolerant."
Risk-tolerant lenders favor Class B and C suburban office buildings with good value-add potential, said Melissa Page Boeshans, president of New Brighton-based Commercial Title Services, part of the Servion Group.
For a young adult whose parent(s) received a high school diploma, the predicted probability of enrollment ranges from about 59% for the least risk-tolerant individual to about 84% for the most risk-tolerant individual.
Elon Musk has created a corporate culture that fosters open collaboration with entrepreneurial and risk-tolerant mindsets.
Bosch's emerging e-mobility businesses, meanwhile, need to operate with greater agility and connectivity, according to Mansuetti, who describes the model as being a risk-tolerant, venture capitalist-type approach to pitching new ideas and learning from mistakes.
As John Maynard Keynes observed, however, Americans are more risk-tolerant; they have a fascination with stocks, dividends, and greater returns.
The quiz found that more than 68 percent of students demonstrated risk-tolerant personalities (24.3 percent of those fell into the "Strategist" category, 21.8 percent into the "Thrill Seeker/Strategist" category and 22.5 percent into the "Thrill Seeker" category).
We maintain that the Brazilian electricity market will offer opportunities to risk-tolerant project developers and power sector investors over the coming years, despite the country's deepening economic recession in 2016.
I'm not sure how much stock to put in that result, which uses happiness data "to estimate how fast the marginal utility of income declines as income increases using an iterated maximum likelihood procedure, assuming a constant relative risk aversion utility function." But there do seem to be a lot of indications that the famously footloose and risk-tolerant citizens of the US are becoming less willing to take leaps into the unknown.
The one question that keeps playing over and over again in my mind, and is the major cause of my insomnia, is how risk-tolerant I am.
"Having failed to get WTO members to agree to extreme neoliberal 'disciplines' that require them to adopt light-handed and risk-tolerant approaches to regulation, it is pushing this aggressively through TISA," said Kelsey.