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Risk Assessment in Investment Featured

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Risk Assessment in Investment Featured

35800

Description

Common investment risks include market volatility, interest rate fluctuations, inflation, liquidi

Risk assessment in investment is the process of identifying, analyzing, and managing the potential risks that could affect the performance of an investment portfolio. It is a critical step for investors to understand the uncertainties that may impact returns and make informed decisions to mitigate these risks.

In addition, investors assess risk tolerance—how much risk they are willing and able to take based on their financial goals, time horizon, and personal preferences. Understanding risk is essential for creating a balanced portfolio that aligns with both the investor’s objectives and the realities of the market, ensuring long-term financial success.