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Zain Zafar Wrote:
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> Justifying an "incorrect answer", in my opinion,
> will not get you any partial marking.
>
> bpdulog Wrote:
> --------------------------------------------------
> -----
> > Ability is average
> >
> > -Large asset base and long time horizon
> indicate
> > an above average risk tolerance.
> > -Moderate return requirement compared to
> > investable assets and reliance on asset returns
> as
> > the sole source of income are mitigating
> factors.
> >
> > Can't comment on willingness since no
> information
> > was provided.
> >
> >
> > I don't get why everyone is having difficulty
> with
> > these questions, they're pretty intuitive. Even
> if
> > I get it wrong, I think my justification would
> get
> > me at least some partial credit.

According to Kaplan that is correct, but who knows.

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That's fine, I'm still going to to go through the process I was taught. If I get it wrong, I get it wrong, big deal.

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These risk tolerance questions are beyond subjective anyway. Institutional risk tolerance at least seems more objective.

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bannisja Wrote:
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> i wish i took L3 in 2006. this whole test hit me
> his asset base was large enough where he could be
> pretty aggressive

Interesting, so the bigger his assets the more agressive he can be?

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sbmarti2 Wrote:
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> Well I don't think there is a specific deal
> mentioned I suppose, I'm just basing that off of
> other people's responses. However, if it mentions
> that he can choose to have jobs like that, he
> would have a higher risk tolerance due to flexible
> labour hours.
>
> If it doesn't mention any of that, then I suppose
> zero points for me, haha.

If it wasn't in the question, that's a pretty extraneous assumption. In a question like that, I assume nothing. Whatever is stated in the passage is what you should base your decisions off.

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sbmarti2 Wrote:
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> bpdulog Wrote:
> --------------------------------------------------
> -----
> > sbmarti2 Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > Well I don't think there is a specific deal
> > > mentioned I suppose, I'm just basing that off
> > of
> > > other people's responses. However, if it
> > mentions
> > > that he can choose to have jobs like that, he
> > > would have a higher risk tolerance due to
> > flexible
> > > labour hours.
> > >
> > > If it doesn't mention any of that, then I
> > suppose
> > > zero points for me, haha.
> >
> > If it wasn't in the question, that's a pretty
> > extraneous assumption. In a question like that,
> I
> > assume nothing. Whatever is stated in the
> passage
> > is what you should base your decisions off.
>
> Fair point, I haven't read the question though so
> I'm not sure what it says. I'm sure it would
> mention something about him still being able to
> work though, as he's only 35. Too bad i don't
> have a copy of the 2006 test.


Fair enough, but if he's relying on his assets to be the sole source of income, that would ratchet his ability down. The average retired NFL player ends up with very little wealth when they reach "normal" retirement age, it's kind of sad actually.

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