- 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
Below-average ability to bear risk and below-average willingness to take risks implies ______ risk tolerance.
B. average
C. below average
A. above average
B. average
C. below average
Correct Answer: C
A client's overall risk tolerance is a function of the client's ability to take on risk and his or her attitude to risk.
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. |