when is a persons risk tolerance lowest?\no when they first make the investment\no when they are concerned…
when is a persons risk tolerance lowest?\no when they first make the investment\no when they are concerned about the diversity of their investment portfolio\no when they are an inexperienced investor\no when they are closest to needing the money they invested
Answer
Brief Explanations:
Risk tolerance is the degree of variability in investment returns that an investor is willing to withstand. When a person is closest to needing the invested money, they have the least ability to absorb potential losses, thus their risk tolerance is lowest. For example, if someone is saving for retirement and is just a few years away from retiring, they can't afford large - scale losses.
Answer:
when they are closest to needing the money they invested