Client says he does not want portfolio’s return to go below -X% in any year. Is that always mean a below aveage risk for the investor no matter of what the x value is?
In the absence of any other info, probably yes. But I don’t think you’d be able to make a blanket statement. Who knows what CFAI will throw our way.
no way. what if I said 30%? that certainly gives you credit crisis 2008 room to work. something to me single digits would be pretty low.
I think when they have below leverage willingness to take risk they will say I prefer no loss rather than large gain or nervous at any loss
-10% was considered below average in one exam for individual. Another exam an institution said below -12% and was considered above average. Another exam individual said below -12% and it was below average. I have no idea.
generally you only need put 2 reason to show willingness to take risk current holding and personal experience and view would be good choice