28.4.3. Robo-Advisors

Try these first

1. 1.

   What is a robo-advisor?

   Hint

   Think of it as a computerized version of a financial advisor.

2. 2.

   Name one benefit of using a robo-advisor.

   Hint

   Consider why someone might prefer automated services.

3. 3.

   What technology do robo-advisors primarily use to offer their services?

   • Robotic devices
   • Algorithms
   • Human advisors

   Hint

   Think about the role of technology in their operation.

4. 4.

   True or False: Robo-advisors require high minimum investments.

   • True
   • False

   Hint

   Consider who can afford to use these services.

5. 5.

   Critically analyze the potential drawbacks of relying entirely on a robo-advisor for investment management.

   Hint

   Think about the benefits that humans bring to investment advisory services.

6. 6.

   Propose a comprehensive marketing strategy to promote the benefits of robo-advisors to first-time investors.

   Hint

   Consider ways to reach new investors effectively.