Which of the Following Is Usually the First Step in the Assessment

question 16

Multiple Choice

Which of the following is usually the first step in the assessment process?

• A) Meeting with the client and establishing a working relationship.
• B) Deciding on which instruments are going to be used.
• C) Clarifying the referral question.
• D) Determining who will pay for the service.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Characteristic Line

A line generated in a graphical representation of the returns on a security versus the returns on the market, used to assess risk.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Variance

A statistical measurement of the dispersion between numbers in a data set, measuring how far each number in the set is from the mean.