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Please respond to the following question which is pertaining to the information following the question:Lynne -Thanks for the helpful post. You captured well the trade-offs of conservative vs. aggressive investment strategies. Nice job!Question – you refer to yourself as a “low-risk taker”, but how would you approach a long-term goal that requires a rate of return (e.g. > 5%) than the returns you would likely get in a convservative strategy (e.g. < 5%)? Curious how you would reconcile that. I know it's not easy!In a volatile market, conservative investment advisors provide a margin of safety. Where the economy is experiencing a foreseen downturn, conservative investment opts for low-risk investments where the company is making profits and beta is low because low risk and profit-making companies record constant or smooth appreciating patterns (Gupta et al., 2014). Therefore, during economic downturns, there is a limited reduction in value, and investors will continue receiving returns on the stock. In long-term asset allocation, the portfolio experiences much reduction.In some instances, financial advisors can give opposite views regarding market outlook thus calling for consideration of risk tolerance and standard deviation of the target asset. A portfolio is therefore made based on the two considerations. Aggressive investors prefer investing in risky stocks that guarantee high returns (VonCannon, 2017). However, there is nothing like great return because when the returns are higher, one should be worried because such investments have massive setbacks like losing access to your account balance for some time, extensive or hidden costs, or hidden risks that are not revealed directly (Gupta et al., 2014). Thus, whenever the returns are better, then the risks associated are higher.As a low-risk taker, I would prefer conservative ways because it is the safest way of saving and making money. I have long term and short-term goals that I have to achieve and the only sure way of achieving them is through investing on low-risk stocks. With low-risk stock, there is a constant and steady return which one can plan for a long period of time unlike in risky stocks where the returns are uncertain (Gupta et al., 2014). Therefore, an individual’s asset allocation will strategy should reflect an individual’s evolving situation and prevailing market conditions.ReferencesGupta, P., Mehlawat, M. K., Inuiguchi, M., & Chandra, S. (January 01, 2014). Portfolio Optimization with Interval CoefficientsVonCannon, B. (January 01, 2017). Building an Investment Portfolio.

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