Discovery & KYC: A new client comes in to see you to discuss trading stocks, male: age 45. He tells you he has 1.5 million net worth, and hates his old advisor. He has lost $500K in the past year

Discovery & KYC:

A new client comes in to see you to discuss trading stocks, male: age 45. He tells you he has 1.5 million net worth, and hates his old advisor. He has lost $500K in the past year and wants fresh eyes.
What would you want to know about him before you make any recommendations?
Provide a detailed listing, including supporting documentation, of how you would proceed.

2. Subprime crisis (discussed during the mortgage bond topic)

Explain the entire Subprime crisis scenario and discuss CDS (Credit Default Swap) and CDO (Collateralized Debt Obligation). Hint: Discuss the role of Investment Bankers (Lehman Brothers), Insurance Companies (AIG) , Banks (Bank of America) and Home Buyers

3. Risk

Explain the meaning of i) Ability to take the risk and ii) Willingness to take the risk
Also explain the different risk personalities like 1) Risk taker 2) Risk neutral 3) Risk averse

4. Financial Statement Analysis for two largest banks in Canada. - RBC vs. TD

Regarding each of the banks' financial results in 2021:

a) Identify each of the banks' diluted earnings (or loss) per common share for the year. (It is always a dollar value, not a percentage)

b) Identify each of the banks' Tier 1 capital ratios.

c) Calculate Return of Equity (ROE) and Return on Assets (ROA)

d) Identify each of the banks' efficiency ratios (if any bank records more than one listing of that ratio, you will identify the lower ratio value).

(e) Explain what an efficiency ratio is, how it is calculated, and what it means. Be careful that you provide information on this ratio in terms of what it means for banks, not what it is for manufacturing and other companies, which is quite different)