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.

Question

Quizplus · Accepted Answer

Studies have shown that risk tolerance generally decreases with age. This may be due to a decrease in earning potential and a greater need to protect wealth. However, individual factors such as personal experience and financial situation can also affect an individual's risk tolerance.

Questionnaires and Attitude Surveys Suggest That Risk Tolerance