Investment Risk Tolerance and the Risk-Takers

Risk Tolerance and Suitability
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Risk Tolerance and Suitability
Investment risk tolerance is the extent of fluctuation in an investment return that an investor can hold out against in the investment portfolio. My current investment risk tolerance is about taking on a greater risk that promises high returns. This tolerance is based on my age since I am young and can afford to take on higher risks to achieve higher returns. The risk I take in my investment focuses on the shorter-term investment horizon, given that my age to retirement gives me a long time to absorb losses. The expectation of a high rate of return leads to the taking of a great deal of risk from seeing an opportunity in the volatility of the market (Gupta, 2022). In most cases, this risk tolerance leads to taking on shorter-term investments that have both high rates of return and potential for losses as a...