What it is:
A risk lover is an investor who has a high propensity to engage in risky. A risk lover is the opposite of a risk-averse investor.
How it works (Example):
Let's assume you are considering purchasing some gain (and the probability of loss) is also high.in Company XYZ, which has been very volatile recently. Because Company XYZ's recent volatility indicates that it carries a high level of risk, the probability of
There are many ways to measure the risk associated with a security or an Beta is among the most common.strategy, and
Why it Matters:
In theworld, high risk means the potential for high returns and high losses, and low return means a low potential for high returns and high losses. Thus, investors who are risk lovers generally choose high-risk .
Being a risk lover is good and bad. The returns can be far higher, but when it's inappropriate for an investor to risk losing risk averse.(for example, if the investor is planning on retiring soon or must a child through college soon), there is little time to recover from any losses. Thus, sometimes it is more appropriate to be