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Basic Question 3 of 8
When the ability to take risks is below average and the willingness to take risks is above average, the investor's risk tolerance should be assessed as ______.
B. average
C. above average
A. below average
B. average
C. above average
User Contributed Comments 6
| User | Comment |
|---|---|
| maryprz14 | that means the client must calm down...lol |
| khalifa92 | calm ur tits |
| zriddle | so ability is more important than willingness? |
| jabiller | yes because they could lose retirement money at retirement and not have enough time to recoup. |
| kingirm | ability is the constraint ... |
| Fraser1997 | It's not the case that that ability is more important, you take the lowest of the two factors. So if instead: the ability to take risk was above average and tolerance of risk was below average, you would still assess it as below average. |
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Learning Outcome Statements
describe risk and return objectives and how they maybe developed for a client
explain the difference between the willingness and the ability (capacity) to take risk in analyzing an investor's financial risk tolerance
CFA® 2025 Level I Curriculum, Volume 6, Module 4.