"To understand the significance of specific personal characteristics and market outlook expectations on risk tolerance, data from the 2019 Survey of Consumer Finances was evaluated. A multiple linear regression was run using risk tolerance as the dependent variable and the following independent variables: age, age2, dependents, gender, financial knowledge, education level, income, job status, marital status, expenses, expectations on market performance over the next five years, and expectations on market performance over the next year. The results of the regression showed that being male results in a significantly higher risk tolerance than being female. It also showed that risk tolerance decreases with age and increases with education level and financial knowledge. Being fully employed also resulted in a much higher risk tolerance score than those who are not fully employed. Risk tolerance also showed to increase with income and be higher for those who are married. The number of dependents was not shown to be significant in affecting risk tolerance. In regards to the effects of changes in market expectations, risk tolerance increased with those individuals who believed the market would perform better over the next five years relative to the past five. Risk tolerance also increased for those who believed the market would perform worse over the next year relative to the past year. Risk tolerance was not significantly affected by those who believed the market would perform worse over the next five years as well as better over the next year. This study indicated the importance of an individual’s personal characteristics on determining their risk tolerance and provides clarity into why risk differs among investors. "