How do economists define expected return and risk? Are investors typically risk averse or risk loving? Briefly

Question:

How do economists define expected return and risk? Are investors typically risk averse or risk loving? Briefly explain.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...