[{"data":1,"prerenderedAt":53},["ShallowReactive",2],{"term:risk-tolerance":3},{"term":4,"related":44},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":37,"stem":38,"takeaways":39,"__hash__":43},"terms\u002Fterms\u002Frisk-tolerance.md","Risk Tolerance",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-risk-tolerance","Understanding Risk Tolerance",[16,17,18],"p",{},"Risk tolerance combines willingness (how losses feel) and capacity (how much loss your finances can absorb).",[16,20,21],{},"It guides asset allocation: lower tolerance usually means more bonds and cash.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"personal-finance","How much loss an investor is willing and able to accept in pursuit of returns.","md",[],{},true,"\u002Fterms\u002Frisk-tolerance",[35,36],"asset-allocation","volatility",{"title":6,"description":28},"terms\u002Frisk-tolerance",[40,41,42],"Risk tolerance is how much loss you can accept.","It combines willingness and financial capacity.","It shapes your asset allocation.","ugvXwVJGQn7IaVU6EhbNeXX7pUDM0uJy-sU2Rv70DAc",[45,49],{"title":46,"description":47,"path":48},"Asset Allocation","How a portfolio is split across asset classes such as stocks, bonds, and cash.","\u002Fterms\u002Fasset-allocation",{"title":50,"description":51,"path":52},"Volatility","How widely an asset's price swings over time.","\u002Fterms\u002Fvolatility",1793226379260]