Individual Investor Characteristics

B

The correct answer is C. "They have great freedom in what they can do with regard to investing."

Explanation:

A. "They are characterized by their personalities": Individual investors have unique personalities, preferences, and investment styles that impact their investment decisions. For example, some investors may prefer conservative investments while others may be more aggressive.

B. "They maintain relatively constant profile over time": This refers to the concept of investment consistency, which means that investors tend to stick with their investment strategy over time, and their risk tolerance and investment objectives remain relatively constant.

C. "They have great freedom in what they can do with regard to investing": This statement is incorrect because individual investors are constrained by various factors, such as their financial resources, investment knowledge, and regulatory restrictions, which limit their freedom in what they can do with their investments.

D. "They define risk as losing money": This statement is true for most individual investors, who tend to view risk as the potential to lose money rather than the potential to earn a higher return. Therefore, they tend to avoid investments that they perceive as risky, even if those investments have the potential for higher returns.

In summary, the correct answer is C because individual investors are not entirely free in what they can do with their investments due to various constraints, including regulatory restrictions and financial resources.