Business Portfolio Planning Personality Traits Essay

The matrix categorizes a firm’s businesses as high or low along two dimensions: the market share and the growth rate of its industry.

The high market share units that have a slow-growth industry are called cash cows.

Once an acceptable risk-return profile is developed, benchmarks can be established for tracking the portfolio’s performance.

Tracking the portfolio’s performance against benchmarks allows smaller adjustments to be made along the way.

Using the risk-return profile, an investor can develop an asset allocation strategy.

Individual investments are selected based on the parameters of the asset allocation strategy.Establishing investment objectives centers on identifying the investor’s risk-return profile.Determining how much risk that an investor is willing and able to assume, and how much volatility that the investor can withstand, is key to formulating a portfolio strategy that can deliver the required returns with an acceptable level of risk.The specific investment type selected depends in large part on the investor’s preference for active or passive management.An actively managed portfolio might include individual stocks and bonds if there are sufficient assets to achieve optimum diversification, which is typically over

Individual investments are selected based on the parameters of the asset allocation strategy.

Establishing investment objectives centers on identifying the investor’s risk-return profile.

Determining how much risk that an investor is willing and able to assume, and how much volatility that the investor can withstand, is key to formulating a portfolio strategy that can deliver the required returns with an acceptable level of risk.

The specific investment type selected depends in large part on the investor’s preference for active or passive management.

An actively managed portfolio might include individual stocks and bonds if there are sufficient assets to achieve optimum diversification, which is typically over $1 million in assets.

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Individual investments are selected based on the parameters of the asset allocation strategy.Establishing investment objectives centers on identifying the investor’s risk-return profile.Determining how much risk that an investor is willing and able to assume, and how much volatility that the investor can withstand, is key to formulating a portfolio strategy that can deliver the required returns with an acceptable level of risk.The specific investment type selected depends in large part on the investor’s preference for active or passive management.An actively managed portfolio might include individual stocks and bonds if there are sufficient assets to achieve optimum diversification, which is typically over $1 million in assets.When investing for lifelong goals, the portfolio planning process never stops.As investors move through their life stages, changes may occur, such as job changes, births, divorce, deaths or shrinking time horizons, which may require adjustments to their goals, risk-reward profiles or asset allocations.Smaller portfolios can achieve the proper diversification through professionally managed funds, such as mutual funds or with exchange-traded funds.An investor might construct a passively managed portfolio with index funds selected from the various asset classes and economic sectors.There are few things more important and more daunting than creating a long-term investment strategy that can enable an individual to invest with confidence and with clarity about his or her future.Constructing an investment portfolio requires a deliberate and precise portfolio-planning process that follows five essential steps.

million in assets.When investing for lifelong goals, the portfolio planning process never stops.As investors move through their life stages, changes may occur, such as job changes, births, divorce, deaths or shrinking time horizons, which may require adjustments to their goals, risk-reward profiles or asset allocations.Smaller portfolios can achieve the proper diversification through professionally managed funds, such as mutual funds or with exchange-traded funds.An investor might construct a passively managed portfolio with index funds selected from the various asset classes and economic sectors.There are few things more important and more daunting than creating a long-term investment strategy that can enable an individual to invest with confidence and with clarity about his or her future.Constructing an investment portfolio requires a deliberate and precise portfolio-planning process that follows five essential steps.

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