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The Swathman’s financial situation indicates an above-average ability to incur risk. In contrast, their statements reflect an average to below-average willingness to take risk. The size of their assets in the context of their age (time horizon), suggests that they are unlikely to exhaust their savings during retirement. In sum, the data indicate an average to above-average risk profile. (Study Session 4, LOS 14.a)

Does this make sense? should we take the Min(ability, willingness) or Avg(ability, willingness)?

When ability is greater than willingness => always go with the willingness! You cannot go against the client's wishes..

When willingness is greater than ability => usually ability overweighs... and you have to explain to your client why..,.

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Kurmanal, are you saying the quoted answer explanation is off?

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go with the lower

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