400 words

Rohit is a financial advisor chosen by Mr. Jitesh who is an operation manager in a leading IT company - TCS in India. Jitesh is excited by the high retums in equities and keeps most his savings in stocks. Rohit enquires from Jitesh about the composition of the equity portfolio and finds out that 80% of the corpus is invested in the stock of Jitesh' employer. Jitesh feels that he has a role in personally contributing to the performance of his software company's stock market price. This belief had made him to keep a large proportion of her total portfolio in his TCS stock. However, Rohit advises Jitesh about the high level of risk in such investment strategy. But Jitesh is adamant and pays no heed to the advice. A. What kind of biases are being exhibited by Jitesh? Justify your answer. (5) B. If you were in position of Rohit, how will you try and convince the client to modify the portfolio? What will be your recommendations about the changes which should be done? (10) Rohit is a financial advisor chosen by Mr. Jitesh who is an operation manager in a leading IT company - TCS in India. Jitesh is excited by the high retums in equities and keeps most his savings in stocks. Rohit enquires from Jitesh about the composition of the equity portfolio and finds out that 80% of the corpus is invested in the stock of Jitesh' employer. Jitesh feels that he has a role in personally contributing to the performance of his software company's stock market price. This belief had made him to keep a large proportion of her total portfolio in his TCS stock. However, Rohit advises Jitesh about the high level of risk in such investment strategy. But Jitesh is adamant and pays no heed to the advice. A. What kind of biases are being exhibited by Jitesh? Justify your answer. (5) B. If you were in position of Rohit, how will you try and convince the client to modify the portfolio? What will be your recommendations about the changes which should be done