COST ACCOUNTING
PERFORMANCE MEASUREMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Your stocks and bonds
|
|
|
Your time horizon and when you will need access to the money
|
|
|
Your debits and credits
|
|
|
Your education level and ethnicity
|
Detailed explanation-1: -To better understand your risk tolerance, ask yourself questions like these and think about your behavioral tendencies-such as what actions you’d likely take after experiencing a significant investment loss or what decisions you’ve made in the past when the markets took a turn for the worse.
Detailed explanation-2: -Stock volatility, market swings, economic or political events, and regulatory, or interest rate changes affect an investor’s tolerance for risk. Age, investment goals, and income contribute to an investor’s risk tolerance.
Detailed explanation-3: -Risk and return Return and risk always go together. The higher the potential return, the higher the risk. You should never blindly pursue high-return investments. Bear in mind your investment goal, investment period and risk tolerance.