Definitions for "Risk tolerance"
As the value of a portfolio varies over time, each individual reacts differently. Some investors are not affected by big swings in the value of their holdings, while others feel very uneasy as their portfolio's value fluctuates. Different asset classes tend to fluctuate more than others, and therefore it is important the individual invests in a portfolio that is consistent with his/her level of comfort, or tolerance for risk.
An investor’s willingness to take the chance that an investment will devalue or will fluctuate in value. The amount of risk an investor is willing to assume is a determining factor in designing an investment portfolio.
A measurement of the amount of investment risk that an individual is willing to assume. This amount of risk may change for an individual as their personal and economic situation changes.
Keywords:  pursuit, higher, return, take, credit
The amount of market and credit risk that an individual is willing to take on in pursuit of a higher return.
Keywords:  stomach, losing, money, year, amount
Amount of money you can stomach losing in a given year.
The degree to which a person is willing to accept financial risk.