Question

    'Risk-Tolerance' is best described by which of the

    following?
    A It refers to the various types of risks one can take Correct Answer Incorrect Answer
    B It refers to the amount of risk one is willing to bear while investing Correct Answer Incorrect Answer
    C It refers to the passive instruments of risk-management Correct Answer Incorrect Answer
    D It refers to the period for which one is willing to risk his/her investments Correct Answer Incorrect Answer
    E It refers to the types of risks that can be reinsured by a third party Correct Answer Incorrect Answer

    Solution

    Risk-Tolerance is a risk management technique which involves the extent to which an investor is willing to endure more risk in exchange for the possibility of a higher return

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