When an Investment Advisor Attempts to Determine an Investor's Risk

question 57

Multiple Choice

When an investment advisor attempts to determine an investor's risk tolerance, which factor would they be least likely to assess?

• A)The investor's prior investing experience
• B)The investor's degree of financial security
• C)The investor's tendency to make risky or conservative choices
• D)The level of return the investor prefers

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide the preparation of financial statements globally.

General Ledger

The master accounting document providing a complete record of all financial transactions of a company.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes recognized as revenue.

Statement

A financial report providing information about an entity's financial position, performance, or changes in financial position, which can influence economic decisions.