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PPT WEEK 2 RISK OBJECTIVES - Coggle Diagram
PPT
WEEK 2
RISK OBJECTIVES
QUESTION 1
RISK TOLERANCE
the level of risk an investor can mentally and economically endure
Based on
Investor's willingness to take risk
Difference?
IMPACT ON /IMPORTANT TO
Institutional investment
More dependent on ABILITY TO TAKE RISK
Spending rate
Liability
Time horizon
Individual investor
Expertise
Experience
Age
SUBJECTIVES
Knowledge
DISCUSSION
Investor's ability to take risk
Depends on Financial circumstances
Assets vs Liabilities
Portfolio size
Secured situation
Insurance
For example: stable job
Investment horizon
OBJECTIVES
BASE ON ECONOMIC OUTCOME