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Stock Trading MCQs

Why is it important for an investor to know their risk tolerance level before trading stocks and investing in general?

Because it is required by law

Because it helps in tax planning

Because it helps them decide which industry to invest in

Because they can then match their risk tolerance level to the types of stocks they are purchasing

Answer

Correct Answer: Because they can then match their risk tolerance level to the types of stocks they are purchasing

Explanation:

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