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Why is it essential for investors to consider their risk tolerance when making investment decisions?
  • a)
    Risk tolerance has no impact on investments.
  • b)
    High-risk investments always lead to higher returns.
  • c)
    Risk tolerance helps in selecting investments that align with one's comfort level.
  • d)
    Risk tolerance is only relevant for short-term investments.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why is it essential for investors to consider their risk tolerance whe...
It is essential for investors to consider their risk tolerance when making investment decisions because risk tolerance helps in selecting investments that align with one's comfort level. This ensures that investors are not exposed to more risk than they can handle.
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Why is it essential for investors to consider their risk tolerance when making investment decisions?a)Risk tolerance has no impact on investments.b)High-risk investments always lead to higher returns.c)Risk tolerance helps in selecting investments that align with one's comfort level.d)Risk tolerance is only relevant for short-term investments.Correct answer is option 'C'. Can you explain this answer?
Question Description
Why is it essential for investors to consider their risk tolerance when making investment decisions?a)Risk tolerance has no impact on investments.b)High-risk investments always lead to higher returns.c)Risk tolerance helps in selecting investments that align with one's comfort level.d)Risk tolerance is only relevant for short-term investments.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Why is it essential for investors to consider their risk tolerance when making investment decisions?a)Risk tolerance has no impact on investments.b)High-risk investments always lead to higher returns.c)Risk tolerance helps in selecting investments that align with one's comfort level.d)Risk tolerance is only relevant for short-term investments.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why is it essential for investors to consider their risk tolerance when making investment decisions?a)Risk tolerance has no impact on investments.b)High-risk investments always lead to higher returns.c)Risk tolerance helps in selecting investments that align with one's comfort level.d)Risk tolerance is only relevant for short-term investments.Correct answer is option 'C'. Can you explain this answer?.
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