lcai

it is one of the EOC questions in the CFAI book

susana

I guess we should take the more conservative one among ability and willingness...

Valores

It's LOW. You put something in the Unique Circumstances or Return section about meeting with client to discuss their low willingness vs high ability at some later point, but you don't ignore their wishes when writing the IPS.

Colum

it is subjective and I have no idea....
if they are 30 I will choose above
60 choose below



Edited 1 time(s). Last edit at Sunday, May 29, 2011 at 12:01AM by goodman2011.

Chuckrox

Interestingly in the Stalla mock there's an individual with high ability and low willingness who they recommend to average.

IAmNeil

i would say low and then in unique mention that you should try to educate to reconcile differences.

canadiananalyst

So I will deffo be averaging if I see one of these come up!

former

Just rereading Schewer, they appear to say you should only average the two is the required return is very low (ie there are a lot of assets compared to required return), as in this case the client can withstand a large drop in portfolio value before their goals are put in danger.