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

Practice Next

Relevant for Exams:

×
×