Risk Tolerance

Question 1

refers to the amount of loss an investor is prepared to handle while making an investment decision.

Answer 1

Risk Tolerance

Question 2

Factors That Influence Risk Tolerance

Answer 2

Timeline
Goals
Age
Portfolio Size
Investor Comfort Level

Question 3

Types of Risk Tolerance

Answer 3

Aggressive
Moderate
Conservative

Question 4

Each investor will adopt a different time horizon based on theirinvestment plans. Generally, more risk can be taken if there is more time.

Answer 4

Timeline

Question 5

Financial goals differ from individual to individual.

• each individual will take on a different risk tolerance based on goals.

Answer 5

Goals

Question 6

Usually, young individuals should be able to take more risks than older individuals.

Answer 6

Age

Question 7

The larger the portfolio, the more tolerant to risk.

Answer 7

Portfolio Size

Question 8

Each investor handles risk differently. Some investors are naturally more comfortable with taking risks than others.

Answer 8

Investor Comfort Level

Question 9

are well versed with the market and take huge risks.
* Such types of investors are used to seeing large upward and downward movements in their portfolio.

Answer 9

Aggressive

Question 10

relatively less risk-tolerant when compared to aggressive risk investors.
* They take on some risk and usually set a percentage of losses they can handle.

Answer 10

Moderate

Question 11

• take the least risk in the market.
• They do not indulge in risky investments at all and go for the options they feel are safest.

Answer 11

Conservative