Risk Tolerance
Barron's Finance & Investment Dictionary:
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Risk Tolerance
the extent to which an investor is risk averse.
The concept is used by investment advisers and financial planners, who ask questions or administer tests attempting to determine an individual’s risk comfort level, which involves emotional as well as rational factors.
See also behavioral finance (or investing).
The concept is used by investment advisers and financial planners, who ask questions or administer tests attempting to determine an individual’s risk comfort level, which involves emotional as well as rational factors.
See also behavioral finance (or investing).
| Risk Premium, Risk Category | |
| Risk Transfer, Risk-Adjusted Discount Rate |
Investopedia Financial Dictionary:
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Risk Tolerance
The degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio.
Investopedia Says:
An investor's risk tolerance varies according to age, income requirements, financial goals, etc. For example, a 70-year-old retired widow will generally have a lower risk tolerance than a single 30-year-old executive, who generally has a longer time frame to make up for any losses she may incur on her portfolio.
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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