Risk level

[LTD]

Hi,
If ABILITY to take a risk is ABOVE AVERAGE
Willingness is BELOW AVERAGE
Common risk level is the lower of two (BELOW AVERAGE) or in a middle (AVERAGE)?
Thanks.

 

[MrSmart]

Both are correct, if you can justify it would be even better.

 

[sharky7]

For the sake of security, I’d rather say below average risk tolerance because below willingness must be respected.
So far I haven’t seen a question where this response wasn’t right.
BTW this dilemma shows up in 2005 Mock and CFAI considers below average, not average.

 

[S2000magician]

Historically, CFA Institute has used the lower of ability & willingness as the overall risk tolerance.
Nevertheless, there are examples of above-average/below average combinations for which they’ve taken the overall risk tolerance to be average.
In short, it’s a crap shoot.