1. When is a clients risk attitude most often assessed?
   1. During the first step of the financial planning process.
   2. During the second step of the financial planning process.
   3. During the third step of the financial planning process.
   4. At the same time investment recommendations are presented to a client.
2. Risk _____________________ measures the amount of financial cushion or the safety net available to a client both before and after an investment decision has been implemented.
   1. tolerance
   2. capacity
   3. preference
   4. need
3. An investors willingness to engage in a risky financial behavior in which she can lose money is called:
   1. risk perception
   2. risk preference
   3. risk tolerance
   4. risk capacity
4. Blake is considering purchasing 100 shares in MNA Corporation. MNA has a market capitalization of $3.4 billion. MNA stock can be classified as
   1. micro-cap.
   2. small-cap.
   3. mid-cap.
   4. large-cap.
5. True or False: The expected return is a function of the riskiness of an investment and is the rate of return expected for an asset or investment portfolio.
6. True or False: Beta measures the total risk of an investment.
7. True or False: Exchange rate risk is an example of systematic risk.