Often we confront risks: opportunities where we have some probability of gaining or losing something and have to decide whether or not to accept the opportunity. The simplest risks are financial. For ...

Risk aversion is a fundamental trait shaping how individuals, firms and policymakers respond to uncertain outcomes. It encapsulates the preference for certain outcomes over gambles with equivalent ...

Why are the prices of stocks and other assets so volatile? Efficient capital markets theory implies that stock prices should be much less volatile than actually observed, reflecting an unrealistic ...

A risk-averse investor is someone who prefers to emphasize security over potential gains. Their portfolio is built to preserve capital and prevent losses first and pursue growth second. This isn't to ...

When it comes to investing money, some people are willing to take on more risk than others. For example, investors who are older and closer to retirement may want to safeguard their money by moving ...

Life is a series of choices. Every time you make a decision, there is a possibility that things won’t go as expected (risk) or that something bad will happen (loss). Aversion to risk and loss have ...

Options trading, which has often been perceived as the domain of high-stakes speculators, can surprisingly serve as a prudent strategy for more risk-averse investors. Derivatives, while complex, offer ...

We estimate the risk attitudes of a large sample of individuals from various fishing communities along the west coast of South Africa. Female fishers and rights holders are found to be more risk ...

In the first part of this series, we introduced the three risk profiles we work with on a daily basis. Before we can even begin to suggest funding options for you, we conduct an extensive vetting ...

Accounting for Clients' Liquidity and Other Financial Needs. J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of ...