IAR Client Investment Recommendations & Strategies

Question 1

What is the primary goal of suitability analysis?

Accepted Answer

Align with client profile

Answer

Maximize firm revenue

Answer

Follow market trends

Answer

Sell high-fee products

Question 2

What strategy reduces investment risk?

Accepted Answer

Diversification

Answer

Timing the market

Answer

Short selling

Answer

Concentration

Question 3

Which client factor is most relevant to risk tolerance?

Accepted Answer

Age and income

Answer

Hair color

Answer

Marital status

Answer

City of residence

Question 4

What is dollar-cost averaging?

Accepted Answer

Fixed investment schedule

Answer

Lump sum investing

Answer

Selling on highs

Answer

Leveraging margin

Question 5

When should a portfolio be rebalanced?

Accepted Answer

Periodically

Answer

Annually only

Answer

At retirement

Answer

Never

Question 6

What is the benefit of tax-loss harvesting?

Accepted Answer

Reduce taxable gains

Answer

Eliminate all taxes

Answer

Boost dividends

Answer

Increase portfolio size

Question 7

What does asset allocation determine?

Accepted Answer

Risk and return potential

Answer

Account number

Answer

Email alerts

Answer

Fee structure

Question 8

What is the focus of a growth strategy?

Accepted Answer

Capital appreciation

Answer

Dividend income

Answer

Tax credits

Answer

Debt repayment

Question 9

What is risk-adjusted return?

Accepted Answer

Return per unit of risk

Answer

Total return

Answer

Net income

Answer

Interest paid