CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Which one is not a criticisms of using robo-advisors?

A. There may be trust issues to allow computers to manage money.
B. Robo-advisors fall short when you need a significant amount of financial hand-holding.
C. It seems too easy to use robo-advisors. You sign up, answer a few questions and you're done.
Correct Answer: C

A is a valid criticism. People won’t give you their money if they don't trust you.
B is a valid one too. Robo-advisors may be all you need if you're in your 20s and all you need is investment management. But if you're starting a family or planning for retirement, investing may be only a small part of the financial puzzle you need to figure out.
C is not a valid criticism. Behind the scenes robo-advisors may run very complex algorithms based on big data to give you recommendations.

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