Risk Aversion – What is it? A common question and one that has compounding effects on your investments. So, what is it? Google “risk aversion” & the top 3 articles easily explains its fundamental basics. Of course, diving into the deeper end unveils further discussions on game theory, risk neutrality, risk acceptance etc. That said, let’s keep it simple! After all, this isn’t meant to be a masterclass on the essentials of finance. At Seedly, we’re here to break it down for you, sprouting the seeds of knowledge. Yes, lousy pun intended. TL;DR: Distinguishing Risk Attitudes Investopedia defines risk aversion as characteristically choosing an investment with lower risk versus one with higher risk and similar expected returns. Risk averse investors can simply be thought of as individuals who avoid risks ...