Ch.12 · Matching Schemes to Investor Profiles · hard
An aggressive investor with a 10-year horizon suddenly faces a job loss. How should their portfolio be reviewed?
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EXPLANATION
Risk capacity is dynamic — it changes with life events. A job loss significantly reduces income, increases financial vulnerability, and may shorten the effective investment horizon if redemptions are needed for expenses. A reassessment of risk profile and portfolio rebalancing toward more conservative options is prudent.
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