A preference for a less risky income, holding fixed its expected value; a characteristic of a person who prefers less risk to more risk (p 452, 836)
Investors that prefer relatively low risk investments where the return is more predictable
Descriptive term used for an investor unable or unwilling to accept the probability of losing capital
A risk-averse investor is one who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk
A term describing an investor who prefers x to taking a risky bet with an expected value equal to x
A characteristic of a person who would pay extra to guarantee the expected outcome
Risk Averse describes an investor who has a low level of tolerance to possible loss of Principal through investing This investor is willing to accept lower levels of expected return in order to avoid possible investment losses
Said of an investor who, given the same return and different risk alternatives, will choose the security with the least amount of risk
Refers to the assumption that rational investors will choose the security with the least risk if they can maintain the same return As the level of risk goes up, so must the expected return on the investment
{s} (Economics, Finance) conservative from a financial viewpoint, preferring lower risk
Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk