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cabinill
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| Posted: 29 Sep 2009 at 11:14 | IP Logged
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kj's answer is much better than mine.
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cabinill
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| Posted: 29 Sep 2009 at 11:18 | IP Logged
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Does anyone identify themselves as risk-seeking? Why would anyone choose a higher-risk investment over a lower-risk alternative if both options had equal returns? Or is this just theoretical?
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700321
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ok cool thanks
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kj_nyc
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| Posted: 29 Sep 2009 at 11:28 | IP Logged
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Mostly theoretical. However, there is only one situation I can think of off the top of my head where someone would be risk-seeking. If you have a call option on a stock, you want the stock to be very volatile (risky), because you are hedged from all downside risk, but the upside potential is unlimited.
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Topic: risk averse, risk seeking, risk indiff
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