When an investment advisor attempts to determine an investor's risk tolerance,which factor would they be least likely to assess?
A) the investor's prior investing experience
B) the investor's degree of financial security
C) the investor's tendency to make risky or conservative choices
D) the level of return the investor prefers
E) the investor's feeling about loss

Question

Quizplus · Accepted Answer

The level of return the investor prefers is an important factor in determining their risk tolerance and is likely to be assessed by investment advisors. Factors such as prior investing experience, degree of financial security, tendency to make risky or conservative choices, and feelings about loss are also important in assessing risk tolerance and are likely to be considered by advisors.

When an Investment Advisor Attempts to Determine an Investor's Risk