Question

Which type of investment would a person with a high-risk tolerance likely choose?​

Answer 1

Answer:

stocks and shares

Explanation:

Usually in investment world the risk profile plays an important role in the process of choosing among the different securities those which best fits to the investor needs. So there are a lot of classifications for risk profile, but the most common would be lower, medium and high risk profile, each one has a different need as follows:

• Low risk profile: those investors are looking for low rates of return because their goal is to keep the purchasing power of the money despite the inflation, and example of securities which offers this kind of return are the treasury securities .
• Medium risk profile: this kind of investors seeks for a higher return than low risk, but are conscious that they must have a high possibility of losing money. and example of this kind of securities are the bad risk qualification.
• high risk profile. those investors are conscious they are exposed to lose all the money invested, but despite that they kept this kind of securities because are looking for a higher return, and example of this securities are stocks of companies, because this kind of securities are more likely to suffer variations in their price, as you can make a lot of money you can lose a lot too.

Answer 2

Answer:

usually this kind of person chooses stocks and shares

Explanation: