Wealth Management Module 4

Which of the following is NOT a component of risk profiling?

• Risk Capacity

• Risk Tolerance

• Risk Appetite

• Risk Requirement

Risk tolerance refers to:

• The financial ability to withstand losses

• The emotional comfort with investment volatility

• The amount of risk required to meet goals

• None of the above

Which factor affects risk profiling by considering how long an investor plans to invest?

• Financial Situation

• Time Horizon

• Investment Goals

• Behavioral Traits

Which technique is commonly used for risk profiling?

• Stock Analysis

• Financial Goal Assessments

• Portfolio Rebalancing

• Market Surveys

Asset allocation involves distributing investments across:

• Different banks

• Multiple asset classes

• Different currencies

• Various countries

Which is NOT a primary asset class mentioned in asset allocation?

• Equities

• Bonds

• Real Estate

• Cash

Which asset allocation strategy involves maintaining a constant ratio regardless of market conditions?

• Strategic

• Tactical

• Fixed

• Flexible

Tactical asset allocation is characterized by:

• Passive investment

• Long-term focus

• Short-term market opportunities

• Ignoring market trends

Flexible asset allocation is best suited for:

• Conservative investors

• Investors seeking stability

• Investors with expert judgment

• Investors avoiding market monitoring

Which investment offers high growth potential but with higher volatility?

• Equity

• Debt

• Fixed Deposits

• Gold