8
QuizMultiple Choice

Investment Strategy, Risk, and Behavioral Finance — Quiz

Question 8 • Personal Finance

What is risk tolerance?

Answer
A
The amount of profit an investment guarantees.
B
The number of investments owned.
C
The level of uncertainty a person is willing to accept.
D
The time required to earn returns.

Explanation

Risk tolerance is the level of uncertainty or potential loss a person is willing to accept when making an investment. It does not describe guaranteed profit, how many investments someone owns, or how long returns take. Therefore, the correct choice is “The level of uncertainty a person is willing to accept.”

AI-written and checked against the verified answer.

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