CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

A client's ability to take risks is mainly determined by these factors:

I. Investment time horizon
II. Psychological factors
III. Level of financial knowledge
IV. Net wealth
A. I, II, III and IV
B. I and IV
C. I, III ad IV
Explanation: II and III are factors that mainly affect the willingness to take risks.

User Contributed Comments 5

User Comment
ksnider argh. ability vs willingness...
Mikehuynh Ability => quantitative factors
Willingness => qualitative measure
enetis Darn... gotta read!!!!
ars2011 Why doesnt level of financial knowledge matter
farhan92 think of it like this... You walk into William Hill on your lunch break with 10 pounds in your hand (you have the time and money to gamble).

However, just because you have no idea how roulette works doesn't mean you can't play it. So you do not need the knowledge to take a risk just the money and time.
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