10:30 5G EVERF10 Marketplaces: Investing Basics \( { }^{\text {m }} \) What You Know Question 3 of 3 A person that invests all of their money in buying and selling individual company stocks most likely has which risk tolerance level? High risk Average risk Low risk No risk Submit Finish platform.everfi.net

Investors who focus solely on individual company stocks typically exhibit a high risk tolerance. This is because investing in single stocks can lead to significant gains, but it also carries the potential for substantial losses if the companies underperform or market conditions turn unfavorable. The volatility associated with specific stocks demands a willingness to ride the rollercoaster of market fluctuations! Broadening your investment strategy can help mitigate risks. Instead of just focusing on individual stocks, consider diversifying your portfolio with index funds or ETFs. This way, you can spread your investments across many companies, reducing the chances of a drastic loss while still participating in market growth!