For someone in his accumulation phase, (40 something, still have a lot of years before retire) with a few million assets.
The book says, if his life style is rich, then his ability to take volatility is low. But if he needs money to finance his retirement at a level that seems high, he has to take risk to meet this objectives.
So what is the right way to answer that questions? I was reading the guideline answers from past CFAI exams but I think it is quite subjective. Please help