Username: Maria Rating: Asked to: Dara Madee Date Created: 04 Dec 2018 |
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Category | 28 |
Tag | Financial |
Question | What is 'Risk Tolerance'? |
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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