Effect of the following on willingess to take risk?

CFA Level III Portfolio Management
#1

What’s the effect of the following statements on the willingness of the investor to take risk?

1- Has his own business.

2- Plans to take early retirement.

3- Is confident that their investment will cover their retirement needs.

#2

  1. Positive = more risk seeking since investor is an entrepreneur

  2. Negative = escape to safety, seeks more stable income thus more risk averse

  3. Positive = probably has surplus to arrange into risky layer of portfolio

#3

Thanks Flashback :slight_smile:

#4

You’re welcome.