Final answer:
Constantly checking stock prices likely indicates a low tolerance for risk, rather than immediate market, business, or political risks. Investment strategies and risk levels should coincide with an investor's life stage and financial goals, with stocks offering high risks and returns, especially in the short run.
Step-by-step explanation:
If you find yourself checking the prices of stocks in your portfolio on an hourly basis and you are not a day trader, the most likely cause is C) the low risk tolerance you have to owning stock. When an investor is constantly monitoring their investments with such frequency, it is often a sign that they are uncomfortable with the inherent risks associated with the fluctuations in the stock market. This behavior is not typically driven by market risk of your stocks, business risk of the companies' management, or political risk because these factors require a more strategic and long-term approach, rather than a reactionary, hourly check.
The bottom line on investing in stocks is that while the rate of return over time can be high, there is also a high level of risk, particularly in the short run. Stocks are known for their liquidity since they can be sold quickly and converted into cash, which is referred to as liquidity. An investor's risk tolerance should reflect their life stage and financial goals. Young investors may opt for a higher risk portfolio with the potential for higher returns over a long period. In contrast, investors nearing retirement might prefer more secure investments.