Risk tolerance is your ability to stomach a decline in the value of your investments. How would you feel if the stock market experienced large declines?
While you may have a high tolerance for risk, your capacity for risk is lower. In that case, you might be better served with a more conservative portfolio than you desire, topreserve the assetsyou'll need to retire. Assessing Risk Tolerance If you have afinancial planner, they might have ...
Each investor determines what he is willing to invest in on the basis of his risk tolerance. An investor who is risk-averse has a low risk tolerance and thus chooses safer investments. He will earn a far lower interest rate than an investor willing to take on more risk — especially if ...
“Everyone’s risk tolerance is going to be different,” says Charlie Horonzy, a certified financial planner and founder of Focused Up Financial in Chicago. Here are some of the determining factors: Goals: The purpose of financial planning isn’t to accumulate the biggest pile of money possible...
It’s my experience that how the risk tolerance question is framed has a great impact on the answer. To illustrate the point, let’s assume you have a $1 million dollar portfolio. Based on your answers to the “I won’t panic”, the “I will rebalance”, and the “I will sleep we...
百度试题 题目What is their tolerance for risk? A. Below average. B. Above average. C. Average.相关知识点: 试题来源: 解析 C 略 反馈 收藏
What is the value of compound interest? What is the value of a call or put option? Taxable vs. tax-advantaged savings? What is my risk tolerance? What is the long-term impact of increased investment return? Certificate of deposit (CD) analyzer What is the dividend yield on a stock? Ho...
If you had a 100% chance of winning $8,000 or an 80% chance of winning $10,000, which would you choose? If you had a 100% chance of losing $8,000 or an 80% chance of losing $10,000 and a 20% chance of losing nothing, which would you choose?USA TODAY...
Greater risk tolerance is often synonymous with investment in stocks, equity funds, andexchange-traded funds(ETFs), while lower risk tolerance is often associated with the purchase of bonds, bond funds, andincome funds. Key Takeaways Risk tolerance is a measure of the degree of loss an investor...
But Penny has a lower risk tolerance. She gets anxious about the possibility of losing money and wants to preserve her capital. Even though stocks offer higher potential returns, she wants to limit her risk exposure. For Penny, volatility is a scary word rather than an opportunity. ...