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A person can be risk averse for many reasons. Risk aversion occurs in many fields, including psychology, economics, and finance and in general, refers to one's desire to prefer bargains that are more certain.
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∙ 10y ago
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Who is risk averse manager?
Risk averse manager is someone who is afraid of or sensitive to risk. An individual that would trade for sure amount that is less than the expected value of the gamble.
Does a high risk adverse investor choose a risk fre investment?
You cannot be adverse to risk, but you can be averse to it.
Which type of investor would be most likely to purchase zero coupon bonds?
(4) risk-averse investors anticipating increases in interest rates
What are different ways that a risk averse person can reduce financial risk?
buying insurance! buying bonds rather than stocks and saving rather than spending- hopefully that last reason is correct but I am definately sure about the first two
The equilibrium risk-return relationship for a risk-averse individual shows what?
The equilibrium risk-return relationship describes the investment/saving decision of a person based on risk versus return. Generally, a rational person maximises their outcome such that the last unit cost of a little more risk is equal to the incremental return on an investment. Since the cost of risk is an expectation due to uncertainty, different individuals value risk at different levels. A risk-adverse individual will choose a lower equilibrium value of investment/saving because their expected incremental costs from risk are higher than a less risk-adverse person.
Where can I find information on good stocks to buy?
This is not a question that has a definite answer. It really depends if you are risk-averse, how much money you are willing to invest, and how liquid you need to be. A Financial Advisor would be a good resource for this answer.
Other things remain constant if the expected inflation rate decreases and investors also become more risk averse the security market line would shift?
Ask Prof. U Reinh
Why would you check the rating of a bond?
There are two complimentary reasons to check a bond's rating. If you're a risk-averse investor, checking a bond's rating indicates the bond's risk of default. These guys look for "investment grade" bonds. If you're an aggressive investor, risk equals reward: the worse a bond is, the more it pays.
Why you think Valentine was or was not brave?
I believe he was brave, cause a person that risk death to do what he believed was right , is called a brave person .
What is behavioral finance?
Behavioral finance is the study of human behavior in finance, which is not always 100% rational as classic finance predicts (risk averse, utility maximizer).
What do bankers wear to work?
An accepted norm is formals. A banker is supposed to be an observer and not getting observed. A banker is supposed to be in peripherals and not in the center, as he is always risk averse.
Would a person that's hiking be more at risk of getting shock by lightning or a person watching TV?
actually a person watching tv would be at risk more because they are the on that is around things that be getting electricuted..
