Diversification:Diversificationis not merely a risk management tool, but also a bridge to align risk tolerance with risk capacity. By spreading investments across a variety of asset classes, investors can manage the risks to fit both their emotional willingness and financial ability to bear loss. Al...
One factor that affects risk tolerance includes the time horizon for an investor. Having a financial goal with a long time horizon, an investor may have greater returns by carefully investing in higher-risk assets, such as stocks. Conversely, lower-risk cash investments may be appropriate for sh...
An investor's risk tolerance typically changes over time. Younger investors can afford to take more risks, as they will typically not need the proceeds from their investments for a longer period of time and because they can afford to wait for a market to turn around. Older investors generally...
In general, investors of young age have high-risk tolerance compared to old-age investors; investors with a long-time horizon will be willing to take greater risk than those with a short-time horizon. Investors with more risk tolerance generally choose investments like equities, Exchange-traded f...
For example, an investor with a high propensity for risk may short-sell stock or speculate in options. One suggested measure of propensity is the ratio of high-risk to low-risk investments in an investor's portfolio. Because risk is defined as uncertainty in returns, and equity securities ...
A. Take on as much risk as possible. B. Have no risk tolerance at all. C. Assess your risk tolerance and make appropriate investments. D. Never invest in anything. 相关知识点: 试题来源: 解析 C。应对投资风险的好方法是评估自己的风险承受能力并进行适当的投资。选项 A 承担尽可能多的风险...
know how to react when the value of investments falls. Many investors flee the market and sell low in the process. At the same time, a market decline can be a great time to buy. Therefore, ascertaining risk tolerance helps in making informed decisions and not make hasty, wrongful decisions...
This could involve making changes to business processes, discontinuing certain activities, or avoiding certain markets or investments. Risk transfer, or风险转移, involves transferring the responsibility and financial implications of a risk to another party, such as purchasing insurance coverage. Risk ...
Which investment strategy is suitable for someone with a low risk tolerance? A. High-frequency trading B. Day trading C. Conservative bond investment D. Speculative stock investment 相关知识点: 试题来源: 解析 C。解析:保守的债券投资适合风险承受能力低的人。高频交易、日内交易和投机性股票投资风险较...
The problem has always been that it’s really hard to get started with small amounts of money. In recent years, great platforms like Fundrise have popped up and “democratized” access to real estate investments. This advancement makes real estate a very viable option for people looking for ...