10:36 OUiz Ouestion 4 of 5 A person that invests all of their money in buying and selling individual company stocks most likely has which risk tolerance level? Select a response. \& Back High risk Average risk Low risk No risk Submit

Investing all of one’s money in individual company stocks typically showcases a propensity for high risk. Individuals with high risk tolerance are more comfortable navigating the volatility of the stock market, aiming for greater potential rewards despite the increased chances of loss. This strategy can lead to significant profits, but it also opens the door to substantial financial pitfalls! It's important to remember common mistakes in stock investment strategies, such as emotional trading or lack of diversification. Relying exclusively on individual stocks can amplify risks, particularly during market downturns. A well-rounded investment strategy often includes a mix of asset classes to mitigate risk and enhance overall returns. Balancing risky investments with safer options can help maintain financial stability!