Question 3 of 10 What is "investment risk tolerance"? The amount of money that you invest each month The amount of money you have lost from investing. How much money you're able to accept losing as an Investor. How risky investing in a new business is

Investment risk tolerance refers to the degree of variability in investment returns that an individual is willing to withstand in their investment portfolio. It is a measure of the investor's comfort level with the level of risk associated with their investments. The options provided in the question are:<br /><br />1. "The amount of money that you invest each month" - This option is incorrect as it describes the investment amount rather than the risk tolerance.<br />2. "The amount of money you have lost from investing" - This option is also incorrect as it refers to past losses, not the willingness to accept future risks.<br />3. "How much money you're able to accept losing as an Investor" - This is the correct answer. It directly addresses the concept of risk tolerance, which is about the amount of loss an investor is willing to accept.<br />4. "How risky investing in a new business is" - This option is incorrect as it describes the risk of a specific investment rather than the investor's risk tolerance.<br /><br />Therefore, the correct answer is the third option, which accurately defines investment risk tolerance.