unsystematic risk.
Your risk management approach should align with your risk tolerance and investment objectives. For instance:
• Risk-Averse Investors: Focus on bonds, index funds, or ETFs to minimize exposure to both systematic and unsystematic risks.
• Risk-Tolerant Investors: Opt for growth stocks or sector-specific investments, while maintaining a core diversified portfolio.
unsystematic risk.
Your risk management approach should align with your risk tolerance and investment objectives. For instance:
• Risk-Averse Investors: Focus on bonds, index funds, or ETFs to minimize exposure to both systematic and unsystematic risks.
• Risk-Tolerant Investors: Opt for growth stocks or sector-specific investments, while maintaining a core diversified portfolio.