Glossary

Glossary

Term Book Chapter Definition
Risk Tolerance Certified Financial Planner (CFP) Exam Chapter 11: Risk Management An individual's ability and willingness to endure potential losses. It often determines the risk management strategy chosen.
Risk Tolerance Securities Industry Essentials (SIE) Exam Chapter 9: Investment Returns and Risk Factors The degree of variability in investment returns that an investor is willing to withstand.