What often happens is that many investors want to make big profits but don't want to limit the risk. Whereas in investment the principle applies High-Risk High Return. Investments that offer high returns, certainly have a risk.
<h2>Further Explanation
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The main point in a risk profile is how committed you are to minimizing risk. Investment or stock trading is not people who dare to take risks, but rather people who are disciplined to limit risk.
The risk profile is closely related to investor characteristics, namely conservative, moderate and aggressive types. Conservative investors tend to avoid risk by looking for something safe. Usually, this type of investor is retirees who only want to get additional income from shares.
Conservative investors usually choose stocks with good fundamentals and save in the long run. Conservative investors don't like fluctuations too much.
While moderate investors are investors who have a higher level of risk tolerance, provided the returns are commensurate. This type of moderate investor has the ability to bear moderate risk, but the expected return is greater than the deposit for example (10 percent -20 percent per year). The aggressive investors tend to actively speculate on buying and selling shares.
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The risk profile brainly.com/question/13652189
Conservative/moderate investors brainly.com/question/13652189
Details
Grade: High School
Subject: Business
Keyword: risk, profile, investors
