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Watching: What is Risk averse

September 22, 2006, 11:33 PM #1

traitimmuathu View Profile View Forum Posts Private Message

Join Jul 2006 Posts 14 Thanks 0 Thanked 0 Times

People ask the meaning of the following words:

risk averse, risk seeking, and risk neutral

See also: What is Fall Short Of – Meaning of Fall Short Of Something

September 24, 2006, 05:38 PM #2

Lan Anh Vu View Profile View Forum Posts Private Message

Join Date Sep 2006 Posts 5 Thanks 0 Thanked 0 Times

Because there are 3 types of risk or you can be 3 different types:

Risk averse is a person who does not like risk. If you”re a risk averse investor, you won”t care about return, you just want to choose the project with lowest risk.

Risk neutral is a person who does not care about risk, he just like return so he will choose the project with highest return.

Risk seeking is a person who loves risk.

And remember that high risk, high return.

I hope that you satisfy with my answer and you are welcome

Last edited by Lan Anh Vu : September 24, 2006 at 05:43 PM

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