As an investment advisor, a client has approach you for a big-time investment looking for a diversified portfolio. Explain to him the basic steps or processes you will follow in order to achieve the best for the client.
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As an investment advisor, a client has approach you for a big-time investment looking for a
diversified portfolio. Explain to him the basic steps or processes you will follow in order to achieve
the best for the client.
Step by step
Solved in 2 steps
- Describe an investment portfolio and how youd go about developing, monitoring, and managing a portfolio of securities.Which of the followings is NOT in the scope of investment planning? a. To develop a risk-free investment portfolio for the client by choosing different types of asset classes. b. To analyse the risk appetite of the client c. To assess the liquidity needs of the client d. To analyse rhe financial objectives and lifestyles of the clientWhile deciding on creating your Portfolio, what are the steps you would take to ensure that the Portfolio Investment Process works well for you. Elaborate on all the important elements of this process which will help you to maximize the returns and minimize the risk.
- As a future manager, how will you make use of your knowledge in the computation of the relationship between risk return and return of various investment portfolio on your future career?Clients today require their investments to not only produce genuine impact but also constant positive returns. As the portfolio manager explain to your client how you will maintain a positive return on the current portfolio selected. Please answer #1 to #3 Explain the selection of optimal portfolios. Describe the portfolio approach to investing and the portfolio management process Differentiate between financial and non-financial sources of risks Incorporate the appropriate performance measures for portfolios Evaluate asset returns using the CAPM and other models such as The Sharpe ratio, the Treynor measures and Jensen’s AlphaYou are interested in investing in an equity fund. Which step of the investment management process will require you to understand the investment management style? A) Defining the investment objectives and constraints. B) Setting the investment strategy. C) Implementing and managing the portfolio. D) Monitoring and reviewing.
- Which two statements about robo-advisors are true?a) They are programmed with the input of humans who are expert in the field b) They involve selecting from predetermined investment funds without involving a humanfinancial advisorc) They use an online smart system that asks preprogrammed questionsd) They involve mirroring a general investment fund’s return on the markete) They involve sitting down with an investment advisor who will ask questions about your risktolerance and your investment horizonAn investor’s first step of investing in the financial markets is to establish an investment objective aligned with his or her long-term financial goals and needs. The critical part of the investment process is to earn the maximum return possible while minimizing risk. Portfolio diversification is the cornerstone of reducing risk in a portfolio. How would you use the Excel spreadsheet to quantify and reduce the risk in your risky asset investment portfolio?The results presented in the chapter are based on historical data. Of what use are these results to a portfolio manager who may be making an investment decision today? Elaborate.
- Clients today require their investments to not only produce genuine impact but also constant positive returns. As the portfolio manager explain to your client how you will maintain a positive return on the current portfolio selected.Explain why income, budget, age, holging period and risk taking capacity helps in making the best options for investment selections and manage a portfolio. Include examples.Joan McKay is a portfolio manager for a bank trust department. McKay meets with two clients, Kevin Murray and Lisa York, to review their investment objectives. Each client expresses an interest in changing his or her individual investment objectives. Both clients currently hold well-diversified portfolios of risky assets.a. Murray wants to increase the expected return of his portfolio. State what action McKay should take to achieve Murray’s objective. Justify your response in the context of the CML.b. York wants to reduce the risk exposure of her portfolio but does not want to engage in borrowing or lending activities to do so. State what action McKay should take to achieve York’s objective. Justify your response in the context of the SML.