Risk tolerance is often approached as if it is simply a matter of individual preference. In reality it should be approached as a question of tolerance, not preferance.
Risk Tolerance
The capacity to accept investment risk. This includes psychological factors as well as financial factors relating to your financial need.
Risk Tolerance The amount of risk an investor is willing to accept for any given investment.
Sector Diversification The percentages of a portfolio's commonstocks that come from each of the major industry groups that compose the market.
Risk tolerance
A term describing how much investment risk or variability you are willing to accept.
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Risk tolerance: Risk tolerance is the level of risk that an individual believes he or she is willing to accept. It is important to note that risk tolerance is a complex attitude, and like any attitude, it has multiple levels of interpretation.
Risk tolerance
An investor's ability or willingness to accept declines in the prices of investments while waiting for them to increase in value..
Risk transfer ...
Risk tolerance
Risk tolerance is the extent to which you as an investor are comfortable with the risk of losing money on an investment.
RISK TOLERANCE: The degree to which an investor can accept risk and uncertainty in either the performance and/or the value of his or her investments.
Risk Tolerance An investor's personal capacity to tolerate declines in his/her investments.
Your Risk Tolerance - Growth investments with a higher level of risk will generally pay higher return, but if your nest egg and peace of mind are key, investments with safety of principal may be the answer. (See Risk Tolerance) ...
What is risk tolerance?
When you meet with a financial advisor, at some point the talk will turn to your "risk tolerance" or "risk profile" . and you may receive a questionnaire intended to gauge it.
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Risk Tolerance
The degree to which an investor can financially and emotionally withstand declines in the value of his or her investments.
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Risk Tolerance: An investor's willingness or ability to withstand a drop in an investment's value.
Risk: The possibility an investment's actual future return will be below its expected return.
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What's Your Risk Tolerance?
Typically, risk is defined as short-term price volatility. But on a long-term basis, you can think of risk as the possibility that your accumulated assets will be insufficient to meet your financial goals.
To determine your risk tolerance - the degree to which you could tolerate a decline in asset value, before you would need to change your strategy - see this MSN Money test.
Good luck and remember that the biggest risk is taking none at all!
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Think About Your Risk Tolerance and Needs
As a general rule, the younger you are and the more time you have to reach a financial goal, the more investment risk you can afford to take.
Target investment mix The percentage mix of stocks, bonds, and short-term reserves that an investor considers appropriate based on his/her personal objectives, time horizon, risk tolerance, and financial resources.
Used as a way to incorporate individual investor risk tolerances into financial decisions.
Know your client, or "KYC", are the ethical and practice guidelines for investment advisors to make detailed assessments about their clients' risk tolerance.
RISK TOLERANCE A measurement of the amount of investment risk that an individual is willing to assume. This amount of risk may change for an individual as their personal and economic situation changes.
The concept of capturing the risk tolerance of an investor by documenting how much risk is acceptable for a given return may be applied to a variety of decision analysis problems.
In addition, the compensation package should be designed so that it motivates the executive to perform in accordance with the company's objectives and risk tolerance.
Result in modern portfolio theory, that the problem of finding an optimal portfolio for a given level of risk tolerance can be separated into two easier problems: first finding an optimal mix of market securities that doesn't vary with risk tolerance, ...
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The ideal asset allocation differs based on the risk tolerance of the investor.
The financial goals of an investor. Risk tolerance, time horizon, financial circumstances, and the investment personality of a client, all play an integral role in the investment objectives.
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Investors must decide how much return they want to aim at and what kind of risk tolerance they have towards the investment.
Groupings of investments that reflect varying degrees of risk tolerance.
Asset Mix
The allocation of your investment dollars between different classes of assets (i.e., stocks, bonds, treasury bills).
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This approach assumes small investors have a low risk tolerance and tend not to hold a stock for the long-term.
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Asset allocation: A fundamental concept in portfolio management in which an investment adviser determines the investment profile for a client, including their risk tolerance and time horizon, ...
The matching of the investor's requirements and needs such as risk tolerance and growth potential preference with a specific investment.
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the second half of 2009 and the opening months of 2010 the Shanghai Stock Exchange Composite (SSEC) index became a sort of barometer of risk tolerance versus risk aversion.
But based on information you provide about your age, investments, and risk tolerance, ...
Investors nearing retirement should consider adjusting their portfolio of investments to account for their current risk tolerance and future cash flow needs. Money market fund accounts typically…
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Investment Objective: An individual's investment goal based on his or her time horizon and risk tolerance.
IRA Rollover: A tax-free transfer of funds from one individual retirement account (IRA) to another.
"Fading the market" is typically very high risk, requiring the trader to have a high risk tolerance. A fade trader would sell when a price is rising and buy when it's falling. Also known as "fading".
KYC - Know Your Customer / Client - A standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge and financial position.
The percentage mix of stocks, bonds, and short-term reserves that an investor considers appropriate based on his/her personal objectives, time horizon, risk tolerance, and financial resources.
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But based on information you provide about your age, retirement plans, and risk tolerance, ...
Asset Allocation
An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.
Asset allocation. The process of selecting a mix of investments designed to realize certain financial goals within the investor’s risk tolerance limits.
Modern Portfolio Theory (MPT): A process of selecting a mix of asset classes and the best allocation of those assets. The method is determined by matching the rates of return to a specified risk tolerance.
A process of selecting a mix of asset classes and the best allocation of those assets. The method is determined by matching the rates of return to a specified risk tolerance. MPT was a Nobel Prize winning theory in 1952.
Apportioning investment funds among different categories of assets, such as cash, fixed income securities and equities. The allocation of assets is built around an investor's risk tolerance.
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An investment strategy is an approach to choosing investments. This can also be called an investment style. Different investment strategies reflect investors' varying objectives, time scales and risk tolerance.
Modern portfolio theory looks at three main factors in determining appropriate investments for an investor's portfolio: the investor's goals and objectives for investing, the time frame of investment, and the investor's risk tolerance, ...
For example, a particular investor might trade an uncertain expected 4% active return with 6% risk, for a certain active return of 1.5%. Used as a way to incorporate individual investor risk tolerances into financial decisions.
Most venture capitalists require some control over the ventures in which they invest, have medium term investment horizons, high risk tolerance, and high expected rates of return, and structure their contributions as mezzanine financing.
A CBO divides the credit risk of a pool of high yield bonds into different classes that appeal to investors with different credit risk tolerances. The CDO structure creates at least one tier of investment-grade bonds.
risk tolerance An investor's ability to handle declines in the value of his/her portfolio. risk transfer The shifting risk from one party to another; examples include purchasing insurance coverage or issuing debt.
 See also: Saving, Banks, Expense, Values, Bills
  
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