susana

Determining the ability to take risk for a pension fund is so much easier as they will provide the data for the specific company vs the industry average. If there is such a systematic approach for the individual investor, this area will not be so vague and subjective. I just could not understand why there is no where in the text that mentions what is roughly the average time horizon and the average required return (or liquidity need) for an individual investor portfolio. If there is an "average" starting point like in the case of the pension fund, this process will be much clearer.