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Risk Tolerance

   Also found in: Acronyms, Wikipedia 0.06 sec.
Risk Tolerance
The degree of uncertainty that an investor can handle in regards to a negative change in the value of their portfolio.

Notes:
An investor's risk tolerance varies according to age, income requirements, financial goals, etc. For example, a 70-year old retired widow would generally have a lower risk tolerance than a single 30-year old executive.


Risk tolerance
An investor's ability or willingness to accept declines in the prices of investments while waiting for them to increase in value.


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