Risk aversion is an approach to making investments in safe and stable financial instruments, even though if they provide limited or low returns. The opposite of risk aversion is “Risk Tolerance”.
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2. 1. What does it Mean?
2. Factors Affecting Risk Tolerance
3. Types of Risk Tolerance
4. Reference
Content
3. Risk aversion is an approach to making investments in safe and stable financial instruments, even though if they provide
limited or low returns. The opposite of risk aversion is “Risk Tolerance”.
Risk tolerance is a term that measures the quantum or the level of risk that an investor is willing to take and bear. A risk-
tolerant investor has the ability to tolerate risks or face uncertain consequences of making investments.
What does it Mean?
4. • Risk Tolerance Impact by Investment Horizon
• Age of the Investor
• Portfolio Characteristics
Factors Affecting Risk Tolerance