n NISM Certifications
NSM General NISM
Medium

Why is risk profiling important for creating client-centric solutions?

Practice question from B20-S3 Financial Planning — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It guarantees returns irrespective of market conditions

  2. B

    It avoids client involvement in decisions

  3. It determines client's risk appetite to customize investment strategy

    Correct answer

  4. D

    It eliminates the need for diversified portfolios

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

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