Risk aversion is the tendency to avoid risk. The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return. In investing, risk equals price volatility. A volatile investment can make you rich or devour your savings. A conservative investment will grow slowly and steadily over time.

Low-risk means more stability. A low-risk investment guarantees a reasonable if unspectacular return, with a near-zero chance that any of the original investment will be lost. Generally, the return on a low-risk investment will match, or slightly exceed, the level of inflation over time. A high-risk investment may gain or lose a bundle of money.1. What does it mean to be "risk averse" in finance? 2. How does risk aversion affect investment decisions? 3. What are some common indicators or measures of risk aversion? 4. How does risk aversion vary among investors? 5. What factors can influence an individual's level of risk aversion? 6. Can risk aversion change over time? If so, what might cause it to change? 7. What are some strategies that risk-averse investors can implement to manage risk? 8. How does risk aversion impact asset allocation decisions? 9. What are the potential drawbacks of being overly risk averse? 10. Are risk-averse investors more likely to prefer safer, lower-return investments? 11. How does risk aversion play a role in portfolio diversification? 12. What are some alternative investment options for risk-averse individuals? 13. How can financial advisors help risk-averse clients navigate investment decisions?