Question on Situational profiling

Right answer ( C ) -I cannot see why ( C ) is "least accurate?

Which of the following statements regarding situational profiling is least accurate?

A) Situational profiling considers an individual’s preferences, economic resources, goals, and desires. B) With situational profiling, the source of an investor’s wealth is considered an indicator of the investor’s risk tolerance. C) When properly used, situational profiling will provide a great degree of insight into an investor’s preferences, economic situation, goals, and desires.

  1. it is very subjective.

  2. will not provide a great deal of insight but some level of insight into investor preferences, goals and desires. You might get a great deal of insight into economic situation.

This sound like a good definition of situational profiling?But if this is right it would

not give you any insight into economic conditions either:

Situational Profiling classifies investors according to

  1. Sources of Wealth

a. Entrepreneurial activities – understand risk and more risk tolerant

b. One-time windfall or heritance or accumulation of employment - need risk education and less risk tolerant

  1. Measures of Wealth

  2. Stage of Life – later stage can take less risk