The terms risk tolerance or risk-bearing capacity are often used when it comes to portfolio advice. Both terms can be used as synonyms since both refer to the personal ability of an individual investor to tolerate and handle investment risk in their portfolio. This means the risk tolerance of an investor refers to the degree of variability in investment returns that an individual is willing to withstand in their investment portfolio. It reflects the investor’s capacity and willingness to endure losses or fluctuations in the value of their investments. To determine the personal risk tolerance or risk-bearing capacity of an