What are the characteristics of risk neutral investors?

Risk-neutral investors prioritize expected returns over risk when making investment decisions. They are indifferent to the level of risk associated with an investment, meaning they would be equally willing to accept a gamble with a high potential return and a high risk, or a safe investment with a lower return, as long as the expected outcomes are the same. This characteristic often leads them to make decisions based purely on mathematical calculations of expected value, rather than emotional or psychological factors related to risk.