1. Investing conservatively.
2. Wanting to avoid risk unless adequately compensated for it; the attitude of most investors. For example, if two investments have the same expected return, the one with lower risk will be preferred. A riskier investment has to have a higher expected return in order to provide an incentive for a risk-averse investor to select it.
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A description of an investor who, when faced with two investments with a similar expected return (but different risks), will prefer the one with the lower risk.
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