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Does a high risk adverse investor choose a risk fre investment?

You cannot be adverse to risk, but you can be averse to it.


What is a sentence with the word investor?

The investor decided to back out of the project.I am an investor for this business.We need an investor if the plan is to go ahead.


What are the key differences between direct investment and portfolio investment, and how do they impact an investor's overall strategy?

Direct investment involves owning a significant stake in a specific company, giving the investor control and influence over its operations. Portfolio investment, on the other hand, involves investing in a diverse range of assets, providing more liquidity and lower risk. The impact on an investor's overall strategy depends on their goals and risk tolerance. Direct investment may offer higher potential returns but also higher risk, while portfolio investment offers diversification and liquidity but potentially lower returns. Investors must consider their objectives and risk tolerance when deciding between the two approaches.


What are the main assumptions about the prevailing investor risk perception in finance It this pattern easily confirmed in the market What are the reasons for this deviation if any?

Looks like a Gradschool question


What is the difference between the required rate of return and the expected rate of return in investment analysis?

The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.

Related Questions

What should you invest 100 dollars in?

It depends on your risk appetite.If you are high risk investor invest in the stock marketIf you are a medium risk investor invest $50 in the stock market and $50 in bank CDsIf you are a low risk investor invest in bank CDs


Which is better bonds or stocks?

If you are a medium to high risk investor then Stocks are good for you If you are a low to medium risk investor then Bonds are good for It all depends on how much of a risk you can take. By investing in stocks you may make profits but you may incur losses as well. But in case of bonds the profits might be less but they are assured.


Definition of a medium term loan?

MEDIUM TERM LOANS - it is a corporate debt instrument with the unique characteristic that notes are offered continuously to investor by an agent of the issuer.


What is the definition of the word investor?

Investor refers to someone who puts money into a venture with the expectation of partaking in profits down the line. The risk in investing lies in the fact that the investment might not, in fact, make any profit and the investor loses his investment.


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 investor incurs the greatest risk?

preferred stockholder


What is the premium added as a compensation for the risk that an investor will not get paid in full?

maturity risk premium


Can any investor avoid systematic risk?

The short answer is no. But you can learn about reducing risk by being better informed.


What is a risk indifferent investor?

A risk indifferent investor is an individual who is indifferent to the risks associated with an investment and is primarily focused on the expected return. This type of investor does not have a preference for riskier assets over safer ones, as they value potential returns equally regardless of the associated risks. Essentially, they are neutral about risk and make investment decisions based on expected outcomes rather than risk assessment.


What is the definition of market risk reduction?

Market risk reduction is the aggregate effort of an investor towards diminishing the possibility of suffering a loss due to factors that affect the market as a whole. Examples of factors that pose market risks are natural calamities and political insecurity in a country.


When an investment advisor attempts to determine an investor's risk tolerance which factor would they be least likely to assess?

When an investment advisor attempts to determine an investor's risk tolerance, which factor would they be leastlikely to assess


What type of investment carries the lowest risk for an average individual investor?

For an average individual investor, the type of investment that carries the lowest risk is typically government bonds or certificates of deposit (CDs) issued by banks. These investments are considered low risk because they are backed by the government or a bank, providing a higher level of security for the investor's principal amount.