Different people treat risk differently ....
Those people who 
do
not like to take any risks at all.
Those people who are mildly
tempted by risk.
Those people who
are attracted to risk. The greater the potential risk and its return.
The basic conclusion about the way investors behave, is that people will invest in projects which they will feel will generate the appropriate wealth they desire against the level of risk they wish to take.
Back to Financial Economics Main Menu