Questionnaires and attitude surveys suggest that risk tolerance
A) increases with age.
B) decreases with age.
C) stays constant over the life cycle for most investors.
D) cannot be assessed.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

Risk tolerance generally decreases with age. As individuals get older, they tend to become more risk-averse, particularly because they have a shorter time horizon for recovering from potential financial losses.

Questionnaires and Attitude Surveys Suggest That Risk Tolerance