30
practice examMultiple Choice

Practice Exam

Question 30 • Personal Finance

Part B: What guides investment choices?

Answer
A
Color
B
Popularity
C
Risk tolerance
D
Timing

Explanation

Investment choices should match how much risk an investor is willing and able to accept. This is called risk tolerance, so the correct choice is Risk tolerance. Color, popularity, and timing do not describe an investor’s personal comfort with potential losses.

AI-written and checked against the verified answer.

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