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:

Self-defeating Beliefs

Thoughts and beliefs that negatively affect a person's confidence, goals, or actions, often leading to undermining their own success.

Behavioral

Pertaining to the actions or responses of individuals or groups in relation to their environment or stimuli.

Psychoanalytic

Pertaining to psychoanalysis, a method of therapy and theory of personality developed by Freud that emphasizes unconscious motives and conflicts.

Rational-emotive Therapist

A mental health professional who employs rational emotive behavior therapy to help patients identify irrational beliefs and negative thought patterns to encourage emotional well-being.