Interpretation of Your Answer and Your Risk Profile

Interpretation of Your Answer and Your Risk Profile

This is not a contest or a test for you to score on. There are no right answers to this there are only true answer. You can still multiply your wealth  greatly and achieve your financial goals regardless of your risk profile if you work according to your risk profile and make informed decisions.

It does not mean that high risk takers will gain more or lose more. The key is making informed decisions based on a isk profile that suits your financial situation and the amount of finance you have. This is vitally important. generally I would not recommended putting all your money in risky investments, nor putting all your money in totally safe investments. You are to find a balance that works for you. For example, putting 80 % of your money in sae investments and 20 % in risky ones might still lose you some money, but perhaps only with the 20 % portion.

The 80 % might give you steady eturns every year, but maybe only 6 %. that is fine, however, choose the ratios according to what suits you. Always remember that you need to have more of your capital in safer steady investments that do not lose much value. Before we continue let me first define hat a risky investment is in terms of proper, informed financial multiplication principles.

A isky investment is one that is still financially sound that meets the citeria of a poper investment, legally as well as other criterion. It has a higher vaiation of possibilities of increases or decrease in terms of value, and a slightly volatile nature in terms of returns. Potensial returns could also be delayed more than your expcted time frame.

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