Situational Profiling

The correct answer is C. I thought Situational profiling is based on: sources of wealth, measures of wealth and stage of life. So where does the economic circumstance come from?

For understanding an individual’s preferences, goals and desires, situational profiling:

A)

is superior to psychological profiling.

B)

places individuals into categories according to sources of wealth and level of risk aversion.

C)

places individuals into categories according to stage of life and economic circumstances.

Situational profiling can enhance an advisor’s understanding of an investor’s preferences, goals, and desires by categorizing individuals according to sources and measures of wealth as well as stage of life.

Can someone help answer the question above and below? Thank you very much!

Which of the following is NOT determined using situational profiling? Investor:

A) biases. B) behavior C) philosophy.

Correct answer is B. Situational profiling does not determine investor behavior, but represents an analysis of behavior in determining preferences and biases, as well as philosophy.

My question: But why does situational profiling determines the bias? Shouldn’t that be in psychological profiling?