Chartered Market Technician Practice Exam 2025 – Complete Prep Guide

Question: 1 / 400

In risk management, what is one common goal for investors?

Maximize tax liabilities

Increase risk without limit

Minimize potential losses

In the context of risk management, one common goal for investors is to minimize potential losses. This involves implementing strategies that help to protect capital while still allowing for some degree of opportunity for returns. Investors often seek to balance the potential risks associated with various investments against the likelihood of experiencing significant financial setbacks. By focusing on minimizing potential losses, investors can make more informed decisions that help safeguard their investments over time. This goal reflects a prudent approach to preserving capital and ensuring long-term financial stability, allowing investors to maintain their portfolio's value even in volatile market conditions.

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Eliminate all forms of risk

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