What Is The Opposite Of Loss Aversion? Risk tolerance is often seen as the opposite of risk aversion. As it implies, you – or more importantly, your financial situation – can tolerate risk, even though you don’t necessarily go seeking it. Investors who are risk tolerant take the view that long-term gains will outweigh any
Which Of The Following Statements Regarding Risk Averse Investor Is True? D. They are willing to accept lower returns and high risk. … They only care about the rate of return and accept investments that are fair games. Risk-averse investors only accept risky investments that offer risk premiums over the risk-free rate. Which of the
What Does The Degree Of Risk Aversion Determine? According to modern portfolio theory How does risk aversion can be determined? In modern portfolio theory, risk aversion is measured as the additional expected reward an investor requires to accept additional risk. … Here risk is measured as the standard deviation of the return on investment, i.e.