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