An investment advisor is working with a client to be sure that he understands the client's needs and preferences as he develops recommendations for the client's portfolio. As he speaks with the client, he ascertains that the client is willing to accept a reasonable level of risk in her portfolio. He further determines that the client expects to be fairly compensated for the level of risk that is assumed by a commensurate increase in value to her portfolio. The investment advisor believes that his client is:

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Grimes

6 November, 00:27

An investment advisor is working with a client to be sure that he understands the client's needs and preferences as he develops recommendations for the client's portfolio. As he speaks with the client, he ascertains that the client is willing to accept a reasonable level of risk in her portfolio. He further determines that the client expects to be fairly compensated for the level of risk that is assumed by a commensurate increase in value to her portfolio. The investment advisor believes that his client is:

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Vincent Watkins · Answer 1

Answer: Risk adverse

Explanation:

A risk adverse investor is referred to as or known as an individual, who is usually willing to endure the risk but also tends to believe that in future they might be compensated to an extent for scale of the risk that is been taken. Security market line is referred to as the theoretical construct which tends to provide a graphical description of expected return of a particular security provided as function of the non-diversifiable risk.