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If advisors are paid a percentage of the earnings, they are more likely to work harder to try to ...

if advisors are paid a percentage of the earnings, they are more likely to work harder to try to make sure to maximize those earnings. Do you think that will cause them to minimize risk? Do you think their client's portfolios will look similar to their own personal ones?

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Yes, if the advisors are indeed paid part of the earnings, then what happens is that they will get to treat that as their own income to be earned with this they can be more careful and with this the risk can be minimised. If that is the case we get to draught their clients portfolio in such a way that at the treat their own asset which means there is a high chance that the clients portfolio will be similar to their personal ones.

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