All of the recent hype surrounding Gamestop, cryptocurrency, non-fungible tokens (NFTs), and meme stocks made me question – Is anyone risk averse anymore?

Risk aversion is defined as avoiding risk. Pretty straightforward.If you are a risk-averse investor, you will seek out investments with a low probability of declining in value.

Question 3: Of the Following, Which Would You Choose for Your Investment Returns This Year?

1. A guaranteed return of 3%2. A 95% chance of receiving a 7% return (5% chance of 0%)3. A 75% chance of receiving a 11% return (30% chance of 0%)4. A 50% chance of receiving a 25% return (50% chance of 0%).