Q3. If more than one allocation exists after elimination via return and risk criteria, the advisor then can eliminate those that do NOT meet an individual’s:

A)   unique considerations.

B)   familial heritage

C)   acquaintance recommendations.

Q4. After selecting allocations based on a return objective criterion, the process of elimination for selecting the appropriate individual investor allocation can next use which of the following factors?

A)   Unique considerations.

B)   Risk objective.

C)   Liquidity constraint.

答案和详解如下：

Q3. If more than one allocation exists after elimination via return and risk criteria, the advisor then can eliminate those that do NOT meet an individual’s:

A)   unique considerations.

B)   familial heritage

C)   acquaintance recommendations.

Correct answer is A)       

Unique preferences and other considerations should be used to eliminate those allocations that are inappropriate beyond risk and return objectives. These unique preferences may be related to statements made about what type of securities an individual does not desire holding or some desired liquidity level not already considered explicitly in the liquidity constraint. Any indication as to inappropriateness can be used to eliminate all but the most appropriate allocation.

Q4. After selecting allocations based on a return objective criterion, the process of elimination for selecting the appropriate individual investor allocation can next use which of the following factors?

A)   Unique considerations.

B)   Risk objective.

C)   Liquidity constraint.

Correct answer is B)         

Once the return objective has been met, eliminating allocations via the risk objective can be accomplished.