The amount of risk an individual should take depends on his or her
I.return requirements
II.risk tolerance
III.time horizon

Question

Quizplus · Accepted Answer

The amount of risk an individual should take depends on all three factors - return requirements, risk tolerance, and time horizon. Return requirements will dictate the level of risk needed to achieve those returns. Risk tolerance is essential because if an individual cannot bear the emotional or financial strain of taking on too much risk, they may make poor decisions or abandon their investment strategy. Finally, the time horizon, or the length of time an individual has to achieve their investment goals or recover from losses, will determine the appropriate level of risk. Therefore, all three factors are essential in determining the appropriate amount of risk an individual should take.

The Amount of Risk an Individual Should Take Depends on His