I’ve seen the Schwerser guidance on determining Risk tolerance leve l base on ability and willingness to take risk on Answer Practice Volume 2. (page 196, 2012 version)
They divide into 5 cases, from retirement to working individual with different ability and corresponding 3 level of willingness to take risk. This is kinda complicated to my old rule of thumb: willingness to take risk will be priority. Eg: Above ability to take risk , Below willingness to take risk --> Below overall. Here they say, Above ability + Below willingness for a retire individual will result in AVERAGE overall.
I’m not sure if i should follow Schweser guidance coz they are not marking our paper but CFAI.