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Basic Question 1 of 8

Below-average ability to bear risk and below-average willingness to take risks implies ______ risk tolerance.

A. above average
B. average
C. below average

User Contributed Comments 2

User Comment
johntan1979 The lower of ability and willingness, if they are different.
jonan203 lol, the ability of most american households will exlude them from a majority of risky assets, including equities.

sure they may be willing, but boy are they ignorant.
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Craig Baugh

Craig Baugh

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.