Financial assets allow the risk of a real asset to be borne by investors ______.

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Economy

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  Risk

  Risk implies future uncertainty about deviation from expected earnings or expected outcome.

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  Risk Lover

  Risk lover is a person who is willing to take more risks while investing in order to earn higher returns.

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Definition: A risk averse investor is an investor who prefers lower returns with known risks rather than higher returns with unknown risks. In other words, among various investments giving the same return with different level of risks, this investor always prefers the alternative with least interest.

Description: A risk averse investor avoids risks. S/he stays away from high-risk investments and prefers investments which provide a sure shot return. Such investors like to invest in government bonds, debentures and index funds.

• PREV DEFINITION

  Risk

  Risk implies future uncertainty about deviation from expected earnings or expected outcome.

  Read More

• NEXT DEFINITION

  Risk Lover

  Risk lover is a person who is willing to take more risks while investing in order to earn higher returns.

  Read More

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