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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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