- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 4. Basics of Portfolio Planning and Construction
- Subject 2. Investment Risk and Return Objectives, and Risk Tolerance
CFA Practice Question
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
Correct Answer: A
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. |