ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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risk loving
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risk reverse
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risk neutral
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risk averse
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Detailed explanation-1: -Risk aversion is the tendency to avoid risk and have a low risk tolerance. Risk-averse investors prioritize the safety of principal over the possibility of a higher return on their money. They prefer liquid investments. That is, their money can be accessed when needed, regardless of market conditions at the moment.
Detailed explanation-2: -The risk attitude describes people’s perceptions of uncertainties when making a decision. There are three major risk attitudes: risk aversion, risk seeking, and risk neutrality.
Detailed explanation-3: -Risk-takers in financial markets prefer risky stock positions, eccentric investing, options trading, futures, cryptocurrencies, startups, and penny stocks. A risk-averse investor is a polar opposite. They invest in low-return, low-risk financial instruments.