All Courses > Portfolios > 100
Portfolios 103: How Much Risk Can You Tolerate?

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
What type of risk do investors focus on most often?
Choose wisely. There is only one correct answer.
Market risk. Investors generally notice short-term volatility that's driven by factors such as market risk.
2.
Learning to tolerate day-to-day gyrations in your portfolio is not helpful for dealing with risks in the longer term.
Choose wisely. There is only one correct answer.
False. Most likely, it will help you to put risk into perspective and help you tolerate longer-term risks.
3.
How can you limit market risk?
Choose wisely. There is only one correct answer.
Invest in a variety of markets. To limit the risk of one entire market losing money, invest in a variety of markets.
4.
To limit volatility?
Choose wisely. There is only one correct answer.
Diversify. Owning a variety of investments is the best defense against volatility.
5.
To help you develop your investment philosophy about volatility and risk, there are several questions you should answer. Of the following, which one would be least helpful?
Choose wisely. There is only one correct answer.
What are your stock prices today? This question is not helpful for developing your investment philosophy.