Jaia wants to begin investing a portion of her income. She takes an online investment options quiz, which concludes that she has a low risk tolerance. Define low risk tolerance and describe two investment options that would suit Jaia's risk tolerance. Be sure to explain why these options are well suited for Jaia.

Question

anonymous · Answer

Risk tolerance should not be too hard to define as it means "The degree of variability in investment returns that an individual is willing to withstand." - Investopedia.

anonymous · Answer

Which means that if you have a low risk tolerance you may not be able to withstand the different changes in your investment returns and they might sell early if things go south

anonymous · Answer

What are two investment plans for the risk tolerance?

anonymous · Answer

There are many options that you can think of for someone who can not afford to watch money be lost or gained in their investment portfolio without wanting to withdraw or might need the money immediately so I leave that to you

anonymous · Answer

Thank you!

anonymous · Answer

My pleasure