Spoiler - Schweser Practce Exam Bk1, Exam 2AM question, ability, annual, return, amount

tango_gs

In the question 1, the investors has 3.75m asset base, the return objective
is to cover yearly shortfall 116,438. The answer says the ability to take risk
is low since “the portfolio must meet a very large proportion of their annual needs”.
But I think the 116,438 is a very small amount of the asset base, the investor
surely has the ability to accept interim bad performance.