Aversion to risk is the main reason why people purchase insurance.
Risk avoidance is the propensity to do so. A risk-averse investor is one who favors capital preservation over the possibility of earning a higher-than-average return. Price volatility in investing equals risk. Investing in a risky asset can either make you wealthy or eat up your savings. A cautious investment will increase gradually over time. More stability equates to low risk.
A low-risk investment ensures a respectable, if unspectacular, return with an essentially zero percent chance of losing any of the initial investment. In most cases, the return on a low-risk investment will eventually match or slightly exceed the rate of inflation. Money could be made or lost on a high-risk investment. Risk seeking can be contrasted with being risk averse.
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