7.3 Risk Tolerance

What is investment risk tolerance?

• It is the interest rate on a savings account

• It is the amount of money an individual is willing to invest

• It refers to an individual's ability and willingness to have changes in the value of their investments.

• It is the number of years an individual plans to invest for

What is disposable income?

• Amount of money available before income taxes have been paid

• Amount of money available after income tax and all bills have been paid

• Amount of money available after investing in stocks

• Amount of money available after income taxes have been paid

Select all factors that affect investor risk tolerance.

• Age

• Financial Goals

• Income

• Financial Timeline

• Comfort Level

What is investment income return?

• Loss incurred from an investment

• Profit or earnings created by investment interest and dividends

• Money spent on investment

• Interest paid on a loan

What is investment capital gain?

• The profit made from the sale of an investment.

• The interest earned on a savings account.

• The amount of money initially invested in a project.

• The loss incurred from the sale of an investment.