n NISM Certifications
NSM General NISM
Medium

What should an advisor do first when a client shows loss aversion?

Practice question from I-B4 Session 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Show historical returns immediately

  2. B

    Ignore emotions and focus on data

  3. Start by acknowledging the client’s feelings

    Correct answer

  4. D

    Recommend switching funds

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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