is risk aversion the same as loss averson 
no risk aversion is one s general attitude toward avoiding risk loss aversion is instead the asymmetric propensity to feel the pain of a loss more than the pleasure from an equivalent gain e g losing 100 feels usually worse than gaining 100 feels good being risk averse can be completely rational given one s personal situation loss aversion however is an irrational tendency identified by behavioral economics the bottom linerisk averse investors tend to favor capital preservation over capital gains and seek out more conservative investments than more risk seeking individuals such investments may include savings products cds highly rated bonds and blue chip stocks being risk averse reduces one s chance of experiencing losses but also comes with opportunity costs missing out on good opportunities and sacrificing greater expected returns earned elsewhere 