Final answer:
To convince investors to accept greater volatility, it's key to provide a higher potential return on investment, explain the benefits of diversification, highlight long-term growth perspectives, and show a successful track record.
Step-by-step explanation:
The subject in focus here is the complexity of investment decisions in the context of risk and return trade-offs. Convincing investors to accept greater volatility requires a few strategies. First, showcasing a higher potential return on investment is crucial as investors often hold a risk-reward expectation that for higher risks, the potential rewards should also be higher. Secondly, it's important to explain the benefits of diversification in reducing risk without significantly diminishing potential returns. Thirdly, highlighting long-term growth prospects can shift the investors' focus from short-term volatility to the potential for higher returns over an extended period. Finally, demonstrating a track record of successful investments can instill confidence in investors about the fund manager's ability to navigate through market volatility successfully.
In terms of practical information, individuals can purchase stocks through brokerages or online trading platforms. When investing, diversifying your portfolio is one of the main strategies to manage risk by spreading investments across various financial instruments, industries, and other categories.