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Risk Appetite
Risk appetite describes how much uncertainty or loss an investor is emotionally and financially prepared to accept.
An investor who panics at a small fall may need a more conservative allocation than expected.
Risk profiling became common as advisory practices moved toward suitability-based recommendations.
Definition
Risk appetite describes how much uncertainty or loss an investor is emotionally and financially prepared to accept.
Case Study
An investor who panics at a small fall may need a more conservative allocation than expected.
Historical Reference
Risk profiling became common as advisory practices moved toward suitability-based recommendations.
Illustration
