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Does defining risk appetite really work?
As in every profession, financial planners, too, have their own jargon. To my mind, one of the more quixotic terms they use is ‘risk appetite’. I have not heard this term used very often in other contexts, for instance, in the case of a paraglider or a white water rafter, but it is commonly used while determining the asset allocation for otherwise staid clients. Of course, risk can take