People have differing levels of risk tolerance from "summary" of The New Psychology of Money by Adrian Furnham
The concept that individuals possess varying levels of risk tolerance is a fundamental aspect of human behavior when it comes to making financial decisions. This notion suggests that people have different thresholds for how much uncertainty or volatility they are willing to accept when investing or engaging in other monetary activities. Some individuals may be more inclined to take on higher levels of risk in pursuit of potentially higher rewards, while others may prefer to play it safe and avoid any chance of loss. Understanding one's risk tolerance is crucial in managing one's financial affairs effectively. It can help individuals make informed decisions about how to allocate their resources and tailor their investment strategies to align with their comfort levels. For instance, someone w...
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