risk tolerance

Definition

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

Use risk tolerance in a sentence

The risk tolerance of the client is high so we not only put him in corporate bonds but also junk bonds.

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As a conservative investor, I had to adjust to increasing my risk tolerance when increasing the value of my investments.

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Before investing, one must consider their risk tolerance and just how much they can afford to lose from their investments.

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risk-averse advisory account