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Unformatted text preview: of risk for each investor. The greater the tolerance for risk, the larger the share of the portfolio allocated to stocks. There are a number of different factors that affect tolerance for risk. We will look at three major factors. Investing Horizon Some investors may be saving money for near‐term goals, such as a down payment on a house, or college tuition of a student in high school. Other investors are saving for goals that are far away, such as retirement. Typically, the farther in the future your investin...
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