Thought I had this topic down. Then I took the end-of-chapter questions, and got less than 50%. I still disagree with some of Schweser’s answers – I think a healthy/active 68 year old retiree with 5mm has just as much ability to take on risk as a 30 year old couple with 2 kids, meager income, and significant cc debt (i.e. expenditures > earnings) who happened upon 300k. Oh well, I have to start seeing it as they do. No way (IMO) the CFAI doesn’t make this a major exam question.
Brother bilo, don’t make that mistake. There will definitely be at least one item set on this. The Schweser 3 day seminar said that the CFAI loves testing this. What I did for this section was re-read the section over once and to keep in mind the factors that affect ability and the factors that affect willingness and go over those questions with the 5 constraints and 2 risk tolerances in front of you. Hope that helps.
thanks, but i think you may have misread my last sentence. i think this is surely going to be on the exam.
haha yes, I did misread it. My mistake 