Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. part 1: discuss in general terms how age, income,

Part 1: Discuss in general terms how age, income, debt level, assets, marital and parental status,...

80.2K

Verified Solution

Question

Finance

Part 1: Discuss in general terms how age, income, debt level,assets, marital and parental status, risk tolerance, time horizon,and general economic conditions should be taken into considerationwhen constructing an investment portfolio. Why is it important tohave a diversified portfolio?

Part 2: How does the Efficient Market Hypotheses fit in with adiversified portfolio? If the efficient market hypothesis is true,why is it still important to study stock fundamentals closelybefore purchasing any stock?

Answer & Explanation Solved by verified expert
3.9 Ratings (760 Votes)
Part1 Age Age is a very important factor while constructing an investment portfolio The less is the age more an investor can take the risk as one has more years to earn and invest and hence risktaking ability will be more the The more is age portfolio should have a very less risky asset Income If the income is fixed every month and there    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Part 1: Discuss in general terms how age, income, debt level,assets, marital and parental status, risk tolerance, time horizon,and general economic conditions should be taken into considerationwhen constructing an investment portfolio. Why is it important tohave a diversified portfolio?Part 2: How does the Efficient Market Hypotheses fit in with adiversified portfolio? If the efficient market hypothesis is true,why is it still important to study stock fundamentals closelybefore purchasing any stock?

Other questions asked by students

Q

Please use the skills you learned in section 9.2 for this assignment. For this activity, you...

Basic Math
Q

Problem 8 ( please write neatly and in full ) a) Draw the block diagram with...

Electrical Engineering
Q

UNITE is a union that was established in the late 1800s to represent workers in the...

General Management
Q

6 Two plane glass surfaces in contact along one edge are separated at the opposite...

Physics
Q

Branch and Bound algorithm Knapsack Problem Item 1 Knapsack Capacity 10 lkg 1 1 Branch...

Basic Math
Q

Read paragraph 5 But talk can have great value you have to think of it...

Basic Math
Q

graph off and use it to make a conjecture about the values of f a...

Calculus
Q

Write an equation for a rational function with Vertical asymptotes at x 3 and x...

Algebra
Q

Apply 11 The table shows the number of minutes Kenny spent practicing the piano Kenny...

Algebra
Q

The volatility of changes in S&P futures mispricing relative to spot is estimated as 0.28%...

Accounting
Q

The data below is for Randall Corporation Accounts receivable - December...

Accounting
Q

The inflow of assets resulting from the sale of products and services is called a(n)...

Accounting