In terms of risk tolerance ability, how big the asset base needs to be so that the individual’s ability to take risk is above average? how about a 7% after-tax nomial return, is that average? And how about 5%? Thanks.
CFAI isnt really clear on this and giving us a hard number to say anything over 11% would be below average risk tolerance. You just really need to look at their background, goals, investing habits and willingness to figure out risk.