Question

Q22) If the client needs to accumulate wealth but is risk averse, which of the following is the most crucial action a financial planner needs to do? Advise investing the client’s current assets: A. In 100% cash equivalent because that would be the safest option B. In products that will bring the highest return regardless of risks C. In fixed income products because they are generally safe D. To an asset allocation consistent with the client’s risk tolerance

          Q22)
If the client needs to accumulate wealth but is risk averse, which of the following is the most crucial action a financial planner needs to do?
Advise investing the client’s current assets:

A. In 100% cash equivalent because that would be the safest option
B. In products that will bring the highest return regardless of risks
C. In fixed income products because they are generally safe
D. To an asset allocation consistent with the client’s risk tolerance

Q22)
If the client needs to accumulate wealth but is risk averse, which of the following is the most crucial action a financial planner needs to do?
Advise investing the client’s current assets:

A. In 100% cash equivalent because that would be the safest option
B. In products that will bring the highest return regardless of risks
C. In fixed income products because they are generally safe
D. To an asset allocation consistent with the client’s risk tolerance

Added by Arvis C.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Luke Humphrey

12/08/2023

Step 1

Investing 100% in cash equivalent is indeed safe, but it will not help the client accumulate wealth as the returns are very low. B. Investing in products that bring the highest return regardless of risks is not suitable for a risk-averse client. High returns are Show more…

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