InvestorWords.com

risk-averse

Definitions (2)

1. Investing conservatively.

2. Wanting to avoid risk unless adequately compensated for it; the attitude of most investors. For example, if two investments have the same expected return, the one with lower risk will be preferred. A riskier investment has to have a higher expected return in order to provide an incentive for a risk-averse investor to select it.

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