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Private Wealth Management - Reading 14: Managing Individual

Q4. Which of the following is NOT one of the behavioral finance traits that leads to market inefficiency? Investors:

A)   think a well run company will be a good investment.

B)   are overconfident in their ability to interpret information and predict performance.

C)   all have the same information and interpret it the same way.

Q5. For understanding an individual’s preferences, goals and desires, situational profiling:

A)   places individuals into categories according to sources of wealth and level of risk aversion.

B)   places individuals into categories according to stage of life and economic circumstances.

C)   is superior to psychological profiling.

Q6. Which of the following statements about Wang's ability and willingess to take on risk is most accurate? Wang’s

A)   willingness to take risk is more important than her ability to take risk.

B)   willingness and ability to take risk are incongruent therefore Rineholt should defer to Wang’s desire for a moderately aggressive portfolio.

C)   ability to take risk is determined by her time horizon and portfolio size.

Q7. Which of the following statements about behavioral finance is TRUE?

A)   Behavioral finance assumes investors exhibit character traits in addition to those stipulated by traditional finance.

B)   Investors are more concerned with portfolio construction versus individual assets' characteristics.

C)   Investors realize their lack of experience in forecasting.

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回复:(mayanfang1)[2009] Session 4: Private Weal...

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