write a half-page pamphlet in everyday language that could be used to educate your client about port olio formation. It was found, from the results of a special MRI scan calibrated to detect...

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write a half-page pamphlet in everyday language that could be used to educate your client about port olio formation. It was found, from the results of a special MRI scan calibrated to detect preferences for risk and return, that my client is happiest with a portfolio whose monthly expected return is 2.3%. Determine the composition of his preferred portfolio, both with and without a risk-free asset, explain how it would be put together, and make a recommendation.

Answered Same DayDec 22, 2021

Answer To: write a half-page pamphlet in everyday language that could be used to educate your client about port...

Robert answered on Dec 22 2021
122 Votes
The objective of this project is to construct the portfolio with the aim of earning returns in
exc
ess of 2% on monthly basis. The portfolio built would be based on a systematic approach and
not a haphazard technique for wealth creation. This would include developing the policy
statement and investor profile of the client which will include his risk assessment, risk appetite
and risk diversification. This will help us in making the choice of ways and means to achieve
returns. We will follow two approaches in the portfolio and both the approaches could be
changed according to the changing market scenario and requirements of our client. These two
policies are: Asset allocation using funds and investing in undervalued securities. Both the above
mentioned techniques can equally raise the value of the client’s portfolio. Asset Allocation will
majorly be done through investing in Mutual Funds,...
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