In financial planning, the risk appetite of the investors are crucial in deciding the types of investment. Basically, there are three types of risk behaviours, which are risk taking, risk indifferent, and risk averting. Critically evaluate the differences, advantages and disadvantages of the abovementioned three types of risk behaviour in financial planning. Based on your opinion, what kind of financial tools can be recommended to different types of investors.

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The readiness of investors to accept financial risk often known as investors risk appetite has been a topic of increasing attention among industry players not least because of the recent buoyancy of f... View the full answer