Ability=Average (could be average tho) Willingness=Below Average Total=Below Average GO!
Ability - Above Average (As they had not to pay for their twins’ education and had not much expenses after pension and portfolio income) Willingness - Below Average, because of the comments mentioned in the passage Overall - Below Average
after 10 years passed - what changet? implied assets up, liabilities down, overal risk tolerance up?
ability- below avg. pension does not cover all of annual expenses, which amount to more than 10% of the portfolio value. Portfolio is relatively small. willingness-below avgerage. the wife has made many statements regarding this overall-below average after 10 years imp assets up-portfolio is had positive returns, can now cover expenses imp liabilities down-sons support themselves overall risk tol up-more money now, less liabilities, want to save up for inheritance for sons so want to take on more risk.
I may be totally wrong, but doesnt the wife willingness still count? She said that safety was more important than growth and did that change 10 years later just because they had had growth? I chose below average because of low willingness, but I am not sure
She stated that her new goal was to build up an inheritance for their sons, which i took to mean she wanted to take on alittle more risk for alittle more return. I may be wrong.
I can’t even remember having to select “above average”, “average”, or “below average”. I thought it was just give two reasons why ability was above average, and one reason why willingness was below average. Or something like that. Am I remembering it wrong, or were you guys all in Asia (I was in Europe)?
Ability - Below Average ( pretty !@#$% up expenses Vs Costs) Willingness -> Wife says low, so low Overall -> below average
LongOnCFA Wrote: ------------------------------------------------------- > She stated that her new goal was to build up an > inheritance for their sons, which i took to mean > she wanted to take on alittle more risk for > alittle more return. I may be wrong. I see that goal to be a return objective. Her risk objective is the same - I HOPE!
CFA-er 101 Wrote: ------------------------------------------------------- > I can’t even remember having to select “above > average”, “average”, or “below average”. I thought > it was just give two reasons why ability was above > average, and one reason why willingness was below > average. Or something like that. > > Am I remembering it wrong, or were you guys all in > Asia (I was in Europe)? Neither can I. I think it’s different paper.
Not only wife said low, but their investments were like in a real conservative option, so their current investment choice gave us insight on what their willingness was regardless of their words. IMO
This must be a different paper. I didn’t have to state above avg/below avg on that question.
Noone had to state above/below. We were asked about risk tolerance Then should should make explanation. In my explanation I say: ability increases, willingness the same-> still below tolerance
i thought it said to give reasons why ability and willingness were “below average” and then circle your choice for risk tolerance
yeah i didnt have these options either - these things are freaking me out
sct123 Wrote: ------------------------------------------------------- > i thought it said to give reasons why ability and > willingness were “below average” and then circle > your choice for risk tolerance Thats weird coz if both ability and willingness are below average, then it’s pretty easy to circle the coice for risk tolerance…:! (BELOW!)
i thought it said to give reasons why ability and willingness were “below average” ----right no need to decide its ability is above or average just pick out why is below ------------- ten years later, obvious take more risk --1-say to take as for maximize the inheritance for sun;2-ability to take more for assets and no liability
The question specifically asked to GIVE two reasons WHY THEY WERE BELOW AVERAGE. They already settle that they were below average. You were only asked to justify that they were below by figurein the case. 1) once they retired they will no additionl income. below average 2) modest asset base relative to income needs. below average willgness : she specificaly don’t want to loose money because of pass memory. I was waiting for a behavioral question, but it did not show up. thanks GOD.
Bacaladitos Wrote: ------------------------------------------------------- > sct123 Wrote: > -------------------------------------------------- > ----- > > i thought it said to give reasons why ability > and > > willingness were “below average” and then > circle > > your choice for risk tolerance > > > Thats weird coz if both ability and willingness > are below average, then it’s pretty easy to circle > the coice for risk tolerance…:! (BELOW!) Yeah. maybe there wasn’t the part about circling risk telerance. i think i am have flashbacks to a practice exam.
How many points for that question?