Several things might affect an investor's risk tolerance, or how comfortable they are taking chances in order to generate money. First and foremost, their financial status is important; if they are well$-$off and do not want money right now, they may be more inclined to take chances. However, they could be more cautious if they're strapped for funds or saving for a big purchase. Second, their objectives influence how much risk they can tolerate; if they are saving for a major purchase and cannot afford to lose money, they will probably take it slow. On the other hand, they could be more willing to take chances if they are investing for the long run and have time to recoup from any losses. Their level of expertise and experience also matters; seasoned investors could feel more comfortable taking chances than novices. Last but not least, emotions are important. While some individuals are inherently more comfortable taking on danger, others are more risk$-$averse because of worry or a fear of losing money. Risk and return have a straightforward relationship: investments with more risk have a larger profit potential but also a higher probability of losing money. On the other hand, investments with lesser risk often have lower returns but a smaller chance of losing money. To make well$-$informed decisions that support their financial objectives, investors need to strike a balance between their risk tolerance and their investing goals.

How true is the above information