Client Profiling and Capital Market Theory

Free NASAA Series 65 (Uniform Investment Adviser Law Examination) lesson in Client Investment Recommendations and Strategies. 20 min read, ~3,043 words.

Client types: individuals, business entities (C corp, S corp, partnerships, LLCs), trusts (revocable vs. irrevocable), foundations and charities. Client profile = 5 factors: financial goals, financial situation, risk tolerance (capacity vs. willingness), nonfinancial considerations, time horizon. CAPM: Expected return = Risk-free rate + Beta x (Market return - Risk-free rate)...

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