Question

what is risk tolerance?
an investor who cannot tolerate any risk on their investments
the legal limit on how much money you can invest.
an individuals capacity to accept potential losses on investments.
the amount of money an investment advisor charges.

Explanation:

Risk tolerance refers to an individual's ability to handle potential losses in investments. It is not about an investor who cannot tolerate any risk (as that's a specific type, not the general definition), nor is it a legal limit on investment amount or the charges of an investment advisor. The key concept is the capacity to accept potential losses, which aligns with option C.

Answer:

C. An individual's capacity to accept potential losses on investments.