Business / Taxes / Risk Tolerance: Risk tolerance is the extent to which you as an investor are comfortable with the risk of losing money on an investment. If you’re unwilling to take the chance that an investment that might drop in price, you have little or no risk tolerance. On the other hand, if you’re willing to take some risk by making investments that fluctuate in value, you have greater risk tolerance. The probable consequence of limiting investment risk is that you are vulnerable to inflation risk, or loss of buying power.
Tolerance Adjective Synonyms: open-mindedness, toleration, forbearance, broad-mindedness, permissiveness, magnanimity, indulgence, sufferance, patience, freedom from bigotry or prejudice
Business / Taxes / Target Risk Fund: A target risk fund is a fund of funds that maintains a specific asset allocation in order to provide an essentially level exposure to investment risk. You may find a target risk fund attractive if you MORE
Business / Finance / Risk Premium: The reward for holding the risky equity market portfolio rather than the risk-free asset. The spread between Treasury and non-Treasury bonds of comparable maturity. MORE