Respuesta :
Risk aversion is the propensity to prioritize potential losses over potential rewards when making choices that include trade-offs.
What is an aversion to risk?
The propensity to shun risk is called risk aversion. The investor who favors capital preservation over the possibility of earning a higher-than-average return is referred to as risk-averse. Price volatility is the same as risk in investment. A risky investment has the potential to double or triple your money. Over time, a cautious investment will increase gradually and steadily.
Less danger equals greater stability. A low-risk investment ensures a respectable but unspectacular return and virtually eliminates the possibility of losing any of the initial investment. A low-risk investment will often yield a return that is equal to or slightly higher than inflation over time.
Learn more about risk aversion here:
brainly.com/question/28202069
#SPJ4
