As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B. The table below shows information about the performance of stocks A and B last year....

1 answer below »

As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B.

The table below shows information about the performance of stocks A and B last year.






















Return



Standard Deviation



Stock A



15 %



8.3%



Stock B



14%



2.1%



1. As a financial advisor, are there factors other than return and risk that should be considered in making this decision?


2. Based on these factors, what stock would you recommend to the client?


3. What reasons will you convey to your client to justify your decision in recommending this stock?


4. How will this recommendation impact the client?



Answered Same DayDec 27, 2021

Answer To: As a financial advisor, you are assigned a new client who is considering investing in one of two...

David answered on Dec 27 2021
121 Votes
Investment decision:
1) As a financial advisor, are there factors other than return and risk that

should be considered in making this decision?
Yes, definitely there are other factors than return and risk which are
considered.
Normally people who want to earn money by investing a certain part of their
savings have the obvious idea of earning more money with less risk in a
shorter period. Thus of course, return and risk are the priority for any one to
invest.
But other factors still considered important are:
i) Noble causes like life saving, helping poor, etc, where satisfaction is
considered as the most priority factor.
ii) Charity to religious institutions such as temples, churches, etc where
investment brings very less...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here