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

question 3

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
• E) The investor's feelings about loss

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Definitions:

Integration

The process of combining or incorporating parts into a whole, often used in the contexts of social inclusion and the combination of different societal groups.

Assimilation

The process by which a person or group acquires the social and psychological characteristics of another group.

Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Static

Refers to something that is fixed, unchanging, or lacking in movement.