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:

Information

Data that is processed, organized, or structured in a given context to make it meaningful or useful.

Particular Event

A specific occurrence or happening, often noteworthy or significant in some regard.

Factual Information

Knowledge or data based on real occurrences, observable phenomena, or verified facts.

Eyewitness

A person who directly observes an event and can provide a first-hand account or testimony of what happened, often used in the context of legal evidence.