Question: Question 1 Adele is 45 years old and is an opera singer. She recently received an inheritance amounting to $100,000. Her first thought is to

Question 1

Adele is 45 years old and is an opera singer. She recently received an inheritance amounting to $100,000. Her first thought is to travel to Austria for a year and study opera in Vienna. Her brother Andrew, an accountant, is concerned for her future. Andrew and Adele have made an appointment to get your financial advice. Andrew is hopeful you will be able to influence Adele to invest her windfall rather than spend it. During the discussion on risk profile, it becomes obvious that Adele has lost interest and is not engaged.

Required

Part a)

Suggest ways you might approach the situation and what techniques you might employ to demonstrate to Adele the importance of correctly determining her risk profile to assist in financial decision-making.

[6 marks]

Part b)

Why is trust fundamental to the client-advisor relationship?

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