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Beginning Investing by Danielle L. Schultz

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CHAPTER4

How Much Risk Can You Take?

In This Chapter

  • How risky you’re willing to be—or should be
  • Understanding the different kinds of risk
  • Comparing stocks, bonds, and mutual funds and assessing their risk levels
  • Choosing the right investment mix for your level of risk

We’d all like to make as much money as possible, as quickly as possible. On the other hand, we want to hold on to every penny of our savings, with no loss. Is it possible to do both? Is there a way to balance taking risks with maximizing gain?

In this chapter, we’ll look at the different types of investment risk, ways to measure your risk tolerance, and how to invest accordingly. ...

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