In terms of risk tolerance, what does a conservative investor prioritize?

A conservative investor primarily prioritizes capital preservation over high returns due to their preference for lower risk in their investment strategy. This approach means they are more concerned with safeguarding their initial investment and ensuring that their capital does not decrease, rather than seeking aggressive growth that typically comes with higher risk exposure.

Conservative investors usually favor stable, income-generating investments, such as bonds or dividend-paying stocks, which tend to have less volatility compared to stocks in high-growth sectors. This investment strategy reflects a cautious mindset, as conservative investors typically have a lower risk tolerance and prefer to avoid significant fluctuations in their investment value.

Additionally, the remaining options reflect strategies that align more closely with higher risk and potential for greater returns, which is not in line with conservative investing principles. Hence, capital preservation is the hallmark of a conservative investor's approach to portfolio management.