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You are a financial advisor at a reputable bank. You are knowledgeable about the financial instruments...

You are a financial advisor at a reputable bank. You are knowledgeable about the financial instruments including stocks and bonds. A customer made an appointment with you today to seek investment advice. What questions would you ask the customer, and what advice would you offer?

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Answer #1

Questions that I will ask to my customers will be as follows-

A. I will be asking about risk appetite and risk difference and risk tolerance.

B. I will also be asking him about his investment time horizon.

C. I will also be asking about diversification preference.

D. I will also be asking about objective and goal for investments.

Advices which I will be offering to him will be as follows-

A.I will be advising him to invest in the market for the longer period of time in order to gain from the compounding effect.

B. I will advise him to not follow the noise in the market and stay true to the fundamentals.

C. I will be advising him about proper diversification of his portfolio so that he can manage through different economic cycle.

D. I will also be advising him about investing in stock for longer time horizon.

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