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Factors to consider in creating an investment portfolio

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What factors should be taken into consideration when creating an investment portfolio? How should the components of a portfolio be weighted? Is it important to calculate the weighted average risk? Why or why not?

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Hi,

Here is the answer:

Answer: There are two factors that must be considered before creating any investment portfolio and this factor is (i) Risk and (ii) Return.

The component of ...

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Jayant Kumar, MBA
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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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