Stock Market · True or False
Is it true that risk cannot be eliminated, only managed?
True. All investments carry uncertainty.
Risk is inherent to investing — attempting to eliminate it entirely means accepting zero real returns, while managing it means achieving returns proportional to the risk you can tolerate.
Searching for a risk-free investment strategy when the goal should be managing risk to a level that matches your tolerance and time horizon.
This scenario is one of 155 in the Skillful Stock Market track. Each card states a situation, you decide true or false, and the explanation follows immediately.
- Answer
- True
- Track
- Stock Market
- Topics
- risk-management, investing-principles
Also asked as
Can investment risk be eliminated completely? Why risk can only be managed not removed? Is there a risk-free way to invest in stocks?
The scenario in full
Risk cannot be eliminated, only managed.
Frequently asked questions
Is it true that risk cannot be eliminated, only managed?
True. All investments carry uncertainty.
Can investment risk be eliminated completely?
True. All investments carry uncertainty. Risk is inherent to investing — attempting to eliminate it entirely means accepting zero real returns, while managing it means achieving returns proportional to the risk you can tolerate.
Why risk can only be managed not removed?
True. All investments carry uncertainty. Risk is inherent to investing — attempting to eliminate it entirely means accepting zero real returns, while managing it means achieving returns proportional to the risk you can tolerate.
Is there a risk-free way to invest in stocks?
True. All investments carry uncertainty. Risk is inherent to investing — attempting to eliminate it entirely means accepting zero real returns, while managing it means achieving returns proportional to the risk you can tolerate.
Where does this stock market question come from?
It is one of 155 scenarios in the Skillful Stock Market track. Each card states a realistic situation, you decide true or false, and the explanation follows immediately.
How do I practise more questions like this?
Start the Stock Market quiz. It runs about two minutes per session, the first 150 questions are free across every category, and your progress saves automatically.