11. After interviewing a client in order to prepare a written investment policy statement (IPS), you have established the following:

The client has earnings that vary dramatically between d30,000 and d70,000 (pre- tax) depending on weather patterns in Britain.

In three of the previous five years, the after-tax income of the client has been less than d20,000.

The clients mother is dependent on her son (the client) for approximately d9,000 per year support.

The clients own subsistence needs are approximately d12,000 per year. The client has more than 10 years experience trading investments including com-

modity futures, stock options, and selling stock short. The clients responses to a standard risk assessment questionnaire suggest he has above

average risk tolerance.

The client is best described as having a:

A. Low ability to take risk, but a high willingness to take risk.

B. High ability to take risk, but a low willingness to take risk.

C. High ability to take risk and a high willingness to take risk.