7. When assessing risk tolerance, the investors _____ is based on quantifiable issues, such as specific spending needs, wealth targets and obligations. Whereas, an investors ____ is more of a subjective idea based on specific personality traits.

A) willingness to assume risk; ability to assume risk

B) ability to assume risk; willingness to assume risk

C) asset allocation; ability to assume risk

D) willingness to assume risk; asset allocation

A _____ can be defined as a need for cash in excess of new contributions or savings.

A) liquidity requirement

B) time horizon

C) rebalancing threshold

D) strategic asset allocation