Risk Tolerance. The term ‘risk tolerance’ is used to describe an investor’s willingness and ability to assume risk. A growth investor usually has a higher risk tolerance, meaning that the investor is comfortable with volatility (fluctuations in portfolio value) and is willing to accept a potential decline in portfolio value in exchange for the chance to make higher returns.
Appears in 2 contracts
Sources: Account Agreements and Disclosure Documents, Account Agreements and Disclosure Documents