What is risk tolerance?
An example of an AI chatbot conversation about understanding risk tolerance in investing.
What is risk tolerance?
Risk tolerance refers to the degree of variability in investment returns that an individual is willing to withstand.
How do I determine my risk tolerance?
You can determine your risk tolerance by assessing your financial goals, investment timeline, and comfort with market fluctuations.
Can risk tolerance change over time?
Yes, risk tolerance can change due to factors like age, financial situation, and changes in personal circumstances.
What are the different levels of risk tolerance?
Risk tolerance is generally categorized as conservative, moderate, or aggressive, depending on how much risk an investor is willing to take.
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