about the risk tolerance, the given answer is " above average" What do you think? their salary only can cover their living spending. the mortgage fixed payment is generated from investment income. they also want to preserve their portfolio real value. the required return for next year is 9.75?. I originaly chosed the " below average" please help
i chose average with a similar line of reasoning as you. they have a fairly high return requirement, 2 kids to support, etc. i consistently get a different answer than CFAI/Schweser on these questions. Anyone have any insight on what guidelines they follow to come to these conclusions? i.e. below 10% return requirement = above average, etc.