The most fundamental decision for an investor when considering their investment objectives is the _________.
A) financial resources they have available.
B) investment style they wish to pursue.
C) rate of return they desire.
D) amount of risk they are willing to bear.
E) liquidity they require in their portfolio.

Question

Quizplus · Accepted Answer

The amount of risk an investor is willing to bear is the most fundamental decision to consider when determining investment objectives, as it affects all other factors such as the desired rate of return and liquidity requirements. Risk tolerance also varies among individuals and should be considered before determining investment style and allocation of financial resources.

The Most Fundamental Decision for an Investor When Considering Their