CAPM (Certified Associate in Project Management) Practice Exam 2025 - Free CAPM Practice Questions and Study Guide

Question: 1 / 885

What best describes risk tolerance?

The amount of risk that can be accepted without action

The level of risk after all responses have been taken

The ability to endure risk to a certain degree

Risk tolerance refers to an individual's ability and willingness to take on risk in their investments. Option A is incorrect as it suggests that no action is taken in response to risk. Option B is incorrect as it implies that risk can be eliminated or mitigated completely. Option D is incorrect as it focuses on project management rather than individual risk tolerance.

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The process of managing risk in a project

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