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Username: Maria

Rating:
Guru Stars

Asked to: Dara Madee

Date Created: 04 Dec 2018
Category 28
Tag Financial
Question What is 'Risk Tolerance'?
Advice from Guru
Hello Maria,

Risk tolerance is the degree of variability in investment returns that an investor is willing to withstand. Risk tolerance is an important component in investing. You should have a realistic understanding of your ability and willingness to stomach large swings in the value of your investments; if you take on too much risk, you might panic and sell at the wrong time.

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