Series 7 Exam Question 404: Answer and Explanation

Question: 404

Changes in which of the following non-financial information might change an investor's investment objectives?

I. The investor growing older

II. Getting married or divorced

III. Investment experience

IV. Family responsibilities

• A. II and IV
• B. I, II, and III
• C. I, II, and IV
• D. I, II, III, and IV

Correct Answer: D

Explanation:

D. Actually, all the choices listed would likely change the investor's investment objectives. Typically, as investors grows older, they will likely want to take less risk. By the same token, investing for one person or two people, as in someone getting married or divorced, would change the investment objectives. Also, as people gain investment experience, they will likely be more open to more speculative investments. Plus, you can assume that if an investor has more family responsibilities, they will want to take less risk.