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risk lover

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Financial Dictionary

Risk Lover

An investor who is willing to take on additional risk for an investment that has a low expected return.

Investopedia Commentary

There is always a risk/return tradeoff when investing. Lower returns are usually associated with lower risk investments. Higher potential returns are associated with investments of higher risk as the investor would want to be compensated for taking the additional risk. Risk lovers, however, do not follow this scheme: they acquire investments of higher risk with a lower expected return.

Related Links

Determining Risk And The Risk Pyramid
Love Around Wall Street

See also: Casino Finance, Risk, Risk Averse, Risk Neutral, Risk Tolerance, Risk/Return Tradeoff

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