So the 2005 IPS question w/ Yeo is pretty brutal…and accounted for ~10% of the exam. Has anyone worked through this entire problem or have guideline answers for parts B onward? If not - side question: Willingness = below average (“habitually conservative in all decisions”) Ability = Above average (Fat portfolio, light spending, young, etc.) What is overall risk tolerance for someone like this??? Do we split and say “average” or be cautious and do what the investor is comfortable with (below average)? I say “average”…thoughts?
honor the lesser of the two between willingness and ability shun.
Page 128 of CFAI text on the topic said they would be “average” given the above situation. Page 132 of CFAI text on the topic said they would be “average to below-average” given the above situation. Problem is…CFA usually askes you to circle one. I had seen talk of circling both and putting a line between um, but that sounds like a scary approach.