Risk Tolerance: Definition & Example


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question 1 of 3

How much risk one is willing to take with their investments is known as what?

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1. Managing threats and resources while meeting goals and objectives is known as what?

2. Anyone that has an investment in a company is known as what?

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About This Quiz & Worksheet

What is risk tolerance? Gauge your knowledge of this tolerance and examples of it by working through the quiz and worksheet.

Quiz & Worksheet Goals

You can check your knowledge of:

  • Process in which threats and resources are managed while meeting goals
  • Term for how much risk one is willing to take with their investments
  • Types of investments
  • How companies can manage their risk tolerance
  • Person that has an investment in a company

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on risk tolerance
  • Information recall - access the knowledge you have gained about the different types of investments
  • Interpreting information - verify that you can read information about how companies manage their risk tolerance and interpret it correctly

Additional Learning

You can learn more about this type of tolerance using the lesson called Risk Tolerance: Definition & Example. Take advantage of this lesson to:

  • Review an example of risk tolerance
  • Identify ways to protect investments
  • Figure out what needs to be considered when dealing with financial risks