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Risk averse

Someone who thinks risk is a four-letter word. Risk-averse investors are those who, when faced with two investments with the same expected return but two different risks, prefer the one with the lower risk.

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Related terms

risk aversion
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Tendency of an individual person to avoid risk.

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Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk.

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