overall risk tolerance question

if the ability is above average, but the willingness is below average, is overall average?

i thought it defaults to willingness, but the example in the cirriculum has it above/moderate

is this from the schweser tests? i picked avg for the answer but they said since porfolio is so large you should get the investor to move to average willingness

the general rule is not to go above willingness

this is from the example in the actual cfa text

If below average willingness is due to cognitive error then try to educate. If it is due to emotional bias then try to accomodate the bias as they have enough money (this is my view).

educate ? accomodate ? where’d you get those ?

^ mixing IPS risk tolerance in context of Beh Fin

our famous 5 level BBK model + adapt/moderate/educate/ hypothecate (last term made up).