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:

Frontal Lobe

The part of the cerebral cortex involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions and feelings.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognitions, and inner experience.

Maladaptive Pattern

A behavior or trait that is counterproductive to one's well-being or ability to meet personal or social needs.