Which term describes a person who prefers risky options when making decisions?

The term that describes a person who prefers risky options when making decisions is known as a risk taker. This designation applies to individuals who are willing to engage in activities with uncertain outcomes, often due to the potential for higher rewards. Risk takers typically exhibit a tendency to favor choices that have a significant degree of uncertainty, such as investing in volatile stocks or participating in adventurous activities, because they believe that the potential gains outweigh the possible drawbacks.

This contrasts with other terms: a risk avoider tends to shun risky options in favor of more certain outcomes, a risk neutral individual is indifferent between riskier choices and certain outcomes, and a risk averse person prefers to avoid risk and is more likely to choose safer alternatives. Understanding these distinctions helps clarify the behavior of different individuals in decision-making scenarios, particularly in economic and financial contexts.