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 feelings about loss

Question

Quizplus · Accepted Answer

The level of return the investor prefers is less about risk tolerance and more about investment goals. Risk tolerance is about how much risk an investor is willing to take, not the specific returns they hope to achieve.

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