Reading 15-Individual question 11-MUELLER

Who is reviewing individual port man–Look at this question/answer CFA states -willingness–below average–ok agree ability–above average why??? Overall they say average!!! I can’t get this questions right, I just don’t get it

The exam is from 1999 and they have made modifications since then. That was the way they used to determine overall risk tolerance. Stick with the way they are saying now: the lowest (conservative) of the two is the overall risk tolerance.

did you do part b?

not sure if this is the one, but you SHOULD go w/ average IF the person has below average willingness, but huge wealth. The recommendation should be average + counseling. (i.e. level of wealth can bump up risk tolerance if counseled)

Overall is always the lowest. That bit I’m clear on. Working out the willingness and ability is a little harder.