It is imperative for an adviser to conduct a client risk profile assessment before giving advice.

Which of the following statement is the MOST CORRECT in terms of risk profiling?

Question 8Select one:

a. Risk tolerance is a psychological attribute of individuals and measures their innate attitude towards taking risk.

b. Financial advisers can rely on a risk tolerance questionnaire to assess the true risk tolerance of clients.

c. Risk capacity is the ability of individuals to absorb investment losses without substantially reducing their living standards.

d. All of the specific statements are correct.

e. Two of the specific statements are correct.