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. Related Terms:
Asset Allocation
Bernoulli's Hypothesis
Diversification
Investment Objective
Investment Style
Portfolio
Risk Averse
Risk Discount |