EFTA Document EFTA01458580

Deutsche Asset & Wealth Management Glossary Explanation of terms Risk aversion considers the degree to which investors are willing to take on risk to meet investment objectives. The risk premium is the expected return on an investment minus the retum that would be earned on a risk-free investment. Risk-on/risk-off investing describes a process where investors move to riskier potentially higher-yielding investments and then back again to investments which are perceived to have lower risk.