Risk averse - Revision history

imported>Doug Williamson: Add second definition.

2019-03-08T10:31:10Z

Add second definition.

← Older revision		Revision as of 10:31, 8 March 2019
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	To be risk averse means to prefer a lower level of risk, for any given level of expected return or expected cost.		1.

			Strictly, to be 'risk averse' means to prefer a lower level of risk, for any given level of expected return or expected cost.

	Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.		Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.

			The assumption that market participants are rational and risk averse is one of the underpinnings of the efficient market hypothesis.

	The ~~assumption that market participants are rational and~~ risk averse is ~~one of the underpinnings of the efficient market hypothesis~~.
			2.

			The term 'risk averse' is also used more loosely, to refer to a low risk appetite.


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	== See also ==		== See also ==
	*[[Adverse]]		*[[Adverse]]
			*[[Conservative]]
	*[[Efficient market hypothesis]]		*[[Efficient market hypothesis]]
	*[[Guide to risk management]]		*[[Guide to risk management]]
			*[[Prudence]]
	*[[Rational]]		*[[Rational]]
	*[[Risk]]		*[[Risk]]

imported>Doug Williamson: Expand for Rational.

2018-03-16T21:20:53Z

Expand for Rational.

← Older revision		Revision as of 21:20, 16 March 2018
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	== See also ==		== See also ==
			*[[Adverse]]
			*[[Efficient market hypothesis]]
			*[[Guide to risk management]]
			*[[Rational]]
	*[[Risk]]		*[[Risk]]
	*[[Risk appetite]]		*[[Risk appetite]]
	*[[Efficient market hypothesis]]
	*[[Adverse]]
	* [[Guide to risk management]]

	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
	[[Category:Risk_frameworks]]		[[Category:Risk_frameworks]]

imported>Doug Williamson: Added link to The Treasurers Handbook - Guide to risk managment

2014-11-19T10:19:47Z

Added link to The Treasurers Handbook - Guide to risk managment

← Older revision		Revision as of 10:19, 19 November 2014
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	*[[Efficient market hypothesis]]		*[[Efficient market hypothesis]]
	*[[Adverse]]		*[[Adverse]]
			* [[Guide to risk management]]

	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
	[[Category:Risk_frameworks]]		[[Category:Risk_frameworks]]

imported>Doug Williamson: Link with Adverse page.

2014-06-28T16:04:36Z

Link with Adverse page.

← Older revision		Revision as of 16:04, 28 June 2014
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	*[[Risk appetite]]		*[[Risk appetite]]
	*[[Efficient market hypothesis]]		*[[Efficient market hypothesis]]
			*[[Adverse]]

	[[Category:~~Corporate_Strategy~~]]		[[Category:Corporate_finance]]
	[[Category:~~Managing_Risk~~]]		[[Category:Risk_frameworks]]

imported>Doug Williamson: Add "expected" before cost.

2014-06-28T15:58:06Z

Add "expected" before cost.

← Older revision		Revision as of 15:58, 28 June 2014
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	To be risk averse means to prefer a lower level of risk, for any given level of expected return or cost.		To be risk averse means to prefer a lower level of risk, for any given level of expected return or expected cost.

	Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.		Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.

imported>Doug Williamson: Add "expected" before "return".

2014-06-13T17:04:18Z

Add "expected" before "return".

← Older revision		Revision as of 17:04, 13 June 2014
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	To be risk averse means to prefer a lower level of risk, for any given level of return or cost.		To be risk averse means to prefer a lower level of risk, for any given level of expected return or cost.

	Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.		Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.

imported>Doug Williamson: Make "market" singular.

2014-06-13T17:02:03Z

Make "market" singular.

← Older revision		Revision as of 17:02, 13 June 2014
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	The assumption that market participants are rational and risk averse is one of the underpinnings of the efficient ~~markets~~ hypothesis.		The assumption that market participants are rational and risk averse is one of the underpinnings of the efficient market hypothesis.


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	*[[Risk]]		*[[Risk]]
	*[[Risk appetite]]		*[[Risk appetite]]
	*[[Efficient ~~markets~~ hypothesis]]		*[[Efficient market hypothesis]]

	[[Category:Corporate_Strategy]]		[[Category:Corporate_Strategy]]
	[[Category:Managing_Risk]]		[[Category:Managing_Risk]]

imported>Doug Williamson: Create the page. Source: ACT Risk Management, Reading 1.1.1 p4 The Concept of Risk, 1 April 2011.

2014-06-13T17:00:05Z

Create the page. Source: ACT Risk Management, Reading 1.1.1 p4 The Concept of Risk, 1 April 2011.

New page

To be risk averse means to prefer a lower level of risk, for any given level of return or cost.

Therefore, for example, risk averse investors will always require a higher expected rate of return to compensate for any higher levels of risk which they accept.

The assumption that market participants are rational and risk averse is one of the underpinnings of the efficient markets hypothesis.

== See also ==
*[[Risk]]
*[[Risk appetite]]
*[[Efficient markets hypothesis]]

[[Category:Corporate_Strategy]]
[[Category:Managing_Risk]]