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Financial needs and investment strategy are closely related. Financial needs refer to the goals and objectives that individuals or organizations have concerning their finances, while
Financial needs and investment strategy are closely related. Financial needs refer to the goals and objectives that individuals or organizations have concerning their finances, while investment strategy refers to the approach taken to invest money to achieve those financial goals. On the other hand, investment strategy takes into account an individual's risk tolerance, which is the amount of risk that they are comfortable taking on A more aggressive investment strategy may be appropriate for someone with a higher risk tolerance, while a more conservative investment strategy may be appropriate for someone with a lower risk tolerance. Overall, the relationship between financial needs and investment strategy is that the investment strategy should be designed to meet the financial needs of the investor, considering their risk tolerance, time horizon, and other factors. Do you agree? Discuss.
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