1. The three key elements of investment policy are the return, risk, and constraints. Explain why they are important.
2. Would these three (3) elements have different priorities if referring to an individual investor versus a mutual fund? How about a young adult versus an adult who is retired from his/her working years?
The three constraints define suitability for individual investors.
2. An individual investor needs to review the investment prospectus to identify if the investment fits into his or her portfolio design based on their age, purpose of the investment, risk aversion, tax bracket and time time horizon till the investment funds will need to be made liquid. Different investment tools ...
This problem describes Risk, Return, and Restraints. Why they are important to different investors and matching suitable investment choices to the investor