B IS CORRECT. TERRA'S ABILITY TO TAKE RISK IS HIGH AS SHE HAS LONG...

8. - CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R47 THE PORFOLIO MANAGEMENT PROCESS AND THE IPS Q BANK
CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R47 THE PORFOLIO MANAGEMENT PROCESS AND THE IPS Q BANK
8. B is correct. Terra's ability to take risk is high as she has long years of employment left and has a secure job. Her family also owns a business so that is additional financial support. As her willingness to take risk is low, there's a conflict between willingness and ability, which requires education and resolution with the investor. Section 6.1.1. LO.e.