Portfolio Game

How do risk-tolerance level and investment objectives influence the make up of an investment portfolio?

Can you please give me a few examples, so I can understand this investment portfolio thing a little better. Thank you for your help!

Public Comments

1. When it comes to your investment portfolio, it is important to determine how much risk you can handle. It is also important to periodically review your investment portfolio to change the risk level of your portfolio. But how do you know if your investment portfolio is too risky? Well, you can find that out by looking at the kinds of investments you have. Stock investments Any investment is going to have a certain degree of risk. The fact of the matter, though, is that some investments naturally carry more risk to your investment portfolio than others. Stocks are generally more risky than mutual funds. Cash is the least risky investment of all. Of course, this risk factor is why there is a greater potential for you to make more money in stocks. The riskier an investment is, the more you are likely to lose. The flip side, of course, is that greater risk and chance of earnings also translates into the chance of increased loss Other high risk investments Currency trading is quite risky. If your investment strategy calls for trading on the forex market, slow down. Your investment portfolio may be loaded with risk. For further details you may mail your exact requirement
2. Example#1: If you're a low risk taker, largest pie of portfolio may contain CDs, money market, and t-bills Example#2: If you're a high risk taker, your portfolio may have large cap and agressive growth elements.