Engaging in any risky activity when a safer alternative was available. This applies to many situations, for example trading on one’s own account rather than working for an employer, making unsecured loans rather than secured ones, betting, or failing to insure one’s home. Even risk-averse individuals are prepared to engage in risk taking: they would prefer a safer alternative if the mean expected return were the same, but will choose the risky alternative if it offers a sufficiently higher return than the safe one to compensate them for risk bearing.