You Are a Financial Advisor and a Client Tells You

question 29

Essay

You are a financial advisor and a client tells you he is concerned about the amount of risk in his portfolio. Assuming your client hasn't already done them, what two things can you suggest to reduce your client's risk? What additional information about reducing risk should you provide?

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Definitions:

Critical Thinking

Thinking that does not blindly accept arguments and conclusions. Rather, it examines assumptions, appraises the source, discerns hidden biases, evaluates evidence, and assesses conclusions.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, which is a standardized classification of mental disorders used by mental health professionals in the U.S.

Major Depressive Disorder

A mental health condition marked by persistent sadness or loss of interest in activities, leading to significant impairment in daily life.

World Health Organization

A specialized agency of the United Nations responsible for international public health, founded in 1948 to promote and protect worldwide health.