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

question 58

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 feeling about loss

Distinguish between different perceptual phenomena, including perceptual shifts and the Ames Room illusion.

Understand the concept of perceptual constancy and its types.

Comprehend the principles of Gestalt psychology in perception.

Recognize the mechanisms of size and shape constancy.

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Definitions:

Sensory Adaptation

The phenomenon where sensory receptors diminish in sensitivity to unchanging stimuli over time, resulting in a reduced sensation.

Unchanging Stimulus

A stimulus that remains constant over time, not varying in intensity, duration, or quality, which can lead to habituation or sensory adaptation in organisms.

Sensory Responsiveness

Describes an individual's tendency to react to and process sensory information in a particular way, which can vary widely among different people.

Difference Threshold

The minimum change in stimulation required to detect a difference between two stimuli, also known as the just noticeable difference (JND).