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risk tolerance

Definition

An investor's ability to handle declines in the value of his/her portfolio.

Featured Tip

Be Honest About Your Risk ToleranceYes, investing gurus say that people in certain age brackets should have their portfolios allocated a certain way, but if you can't sleep at night when your investments are down 15% for the year and t ... Read more

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risk premium
risk rate
risk retention group (RRG)
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