Explain the Investment Risk Pyramid and the factors that influence investors’ risk preferences?

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Accounting

Community: Innocence replaced by Experience

4.2 Action Required:

  • To access the link just click on the link (If not working, copy it and paste in the URL)

 

 https://www.investopedia.com/articles/basics/03/050203.asp

 

4.3 Test your Knowledge (Question):

 

  • Explain the Investment Risk Pyramid and the factors that influence investors’ risk preferences?
  • What are the types of investments that fit into each of the risk categories ?