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Number of Securities As a portfolio manager and given the above graphs, how could you use them to select the best portfolio for your client?
Number of Securities As a portfolio manager and given the above graphs, how could you use them to select the best portfolio for your client? 1. By referring to the first graph, define the type of risks: 1.1. Total Risk. [7 Marks] 1.2. Systematic Risk (Non-Diversifiable Risk) [7 Marks] 1.3. Unsystematic Risk (Diversifiable Risk) [7 Marks] 2. By referring to the first graph, which type of risk you'll try to eliminate or reduce when investing in 2.1. The local market. [7 Marks] 2.2 The international markets. [7 Marks] 3. By referring to the second graph, 3.1. Define efficient frontier. [7 Marks] 3.2. The unattainable portfolio. [ 7 Marks] 3.3. The efficient portfolio. [ 7 Marks] 3.4 The inefficient portfolio. [7 Marks] 4. By referring to the second graph, conclude by reflecting the best selection for your client if he's a 4.1 Myopic risk-averse. [9 Marks] 4.2 Risk-averse. [10 Marks] 4.3 Risk-neutral. [9 Marks] 4.4 Risk seeker. [9 Marks] Number of Securities As a portfolio manager and given the above graphs, how could you use them to select the best portfolio for your client? 1. By referring to the first graph, define the type of risks: 1.1. Total Risk. [7 Marks] 1.2. Systematic Risk (Non-Diversifiable Risk) [7 Marks] 1.3. Unsystematic Risk (Diversifiable Risk) [7 Marks] 2. By referring to the first graph, which type of risk you'll try to eliminate or reduce when investing in 2.1. The local market. [7 Marks] 2.2 The international markets. [7 Marks] 3. By referring to the second graph, 3.1. Define efficient frontier. [7 Marks] 3.2. The unattainable portfolio. [ 7 Marks] 3.3. The efficient portfolio. [ 7 Marks] 3.4 The inefficient portfolio. [7 Marks] 4. By referring to the second graph, conclude by reflecting the best selection for your client if he's a 4.1 Myopic risk-averse. [9 Marks] 4.2 Risk-averse. [10 Marks] 4.3 Risk-neutral. [9 Marks] 4.4 Risk seeker. [9 Marks]
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