risk neutral


Insensitive to risk, meaning someone who is completely indifferent to the risk involved in an investment and is only concerned about expected return.

Use risk neutral in a sentence

You should try to make sure that you know if something is risk neutral and decide if it has a big enough pay off.

​ Was this Helpful? YES  NO 5 people found this helpful.

I didn't want him on the board of directors because I knew that he was very risk neutral and might do something to mess things up.

​ Was this Helpful? YES  NO 10 people found this helpful.

Because the investor was extremely rich and had investments spread out across many different ventures, they were risk neutral regarding their most recent stock purchase.

​ Was this Helpful? YES  NO 3 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
risk-averse risk seeking