Why is the Risk Activity Trade-Off an Equally Likely Outcome?
The Risk Activity is designed to be as simple for people to understand as possible and intuitive for clients across all levels of financial literacy and investing experience. This is why the tradeoff is positioned as a 50/50 outcome, as clients have a high understanding of that probability.
Eliminating ambiguous distributions also means that their Attitude to Risk and Sensitivity to Loss are free of interpretation biases.
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