Which of the statements comes closest to the amount of financial risk that you (and...

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Finance

Which of the statements comes closest to the amount of financial risk that you (and your {husband/wife/partner}) are willing to take when you save or make investments? INTERVIEWER: IF MORE THAN ONE RESPONSE IS GIVEN, USE THE FIRST CATEGORY THAT APPLIES.
1. Take substantial financial risks, expecting to
earn substantial returns.
2. Take above-average financial risks, expecting
to earn above-average returns.
3. Take average financial risks, expecting to earn
average returns.
4. Not willing to take any financial risks.
While thinking about the best-fit answer, one of the clients mentioned that she cannot handle staying awake at night during market downturns. Take a look at the answers and consider how the client might answer based on what she shared. How would you explain to her the investment process and the relationship between reward and risk?

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