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In: Accounting

Describe the difference between an investor who has a high risk tolerance and an investor with...

Describe the difference between an investor who has a high risk tolerance and an investor with a low risk tolerance.

Solutions

Expert Solution

S. No High-risk tolerance investor Low risk tolerance investor
1 Also knows as an investor is aggressive Also knows as a conservative investor.
2 Willing to lose money to get a higher return Investor will prefer the investments which are stable.
3 Equity will be the preferred mode of investment. Debts will be the preferred mode of investment.
4 Returns are maximum. Returns are optimum.
5 Risk is very high. Balanced risk.
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