There are three kinds of risk preference: conservative, conservative and radical.
First, conservative risk preference
Conservative risk preference refers to investors' low tolerance for risks and more emphasis on the stability of income and the security of principal in investment decision-making. Therefore, conservative investors will choose low-risk investment strategies to ensure the safety of investment, such as national debt and bank deposits, but the rate of return of this investment strategy is low.
Second, a sound risk appetite.
Robust risk preference means that investors are more tolerant of risks, pay more attention to the security and stability of returns, and attach importance to the security of principal and the stability of returns in investment decisions. Therefore, prudent investors will choose low-risk and medium-risk investment strategies to ensure the safety of investment and the stability of income, such as bonds and stocks, but the yield of this investment strategy is relatively low.
Third, radical risk preference.
Aggressive risk preference means that investors are more tolerant of risks and pay more attention to the height of return and the return of principal in investment decision-making. Therefore, in order to obtain higher investment returns, radical investors will choose high-risk investment strategies, such as futures and foreign exchange. However, the risk of this investment strategy is relatively high, and investors need to have enough investment knowledge and skills to achieve the expected return on investment.
In a word, there are three kinds of risk preference: conservative, conservative and radical. Investors can choose appropriate investment strategies according to their own risk preferences to maximize the return on investment. However, investors need to carefully analyze the risks and benefits of investment strategies according to their own investment knowledge and skills to ensure the safety and sustainability of investment.