QUESTIONS 115 THROUGH 120 RELATE TO PORTFOLIO MANAGEMENT.

120. A financial advisor gathers the following information about a new client:



The client is a successful economics professor at a major university



The client plans to work full time for seven years and then will work part time for 3 years

before retiring



The client owns two homes and does not have any outstanding debt



The client has accumulated retirement savings of approximately $ 2 million through their

employer’s retirement plan and will have anticipated retirement spending needs of $60,000

per year



The client reads numerous financial publications and follows markets closely



While concerned about the current health of the global economy, the client maintains that

he is a long-term investor

Based on the above information, which of the following best describes this client?

A. low ability to take risk, but a high willingness to take risk

B. high ability to take risk, but a low willingness to take risk

C. high ability to take risk and a high willingness to take risk