Question 1 (20 marks) You are a portfolio manager for a leading financial institution. You have a client who is new to portfolio management, invested $5,000,000 in Honey Bun Company and $3,000,000 in JMMB Investment Company. The client had some concerns about his investment portfolio. Honey Bun's expected return is 8% and JMMB's expected return is 10.2%. The client had a challenge understanding the concept of a portfolio and sort answers to the following questions and information enquires. Required a) What are the steps in the portfolio management process? (4 marks) b) Describe the return objectives of Capital Preservation, Capital Appreciation, Current Income and Total Return. (2 marks) Describe four investment constraints that an investor may face. (2 marks) Explain the three phases of an investor's life cycle. (3 marks) State the three basic assumptions behind Markowitz Portfolio theory. (3 marks) Using indifference curves explain the relationship between risk and returns (Risk Aversion). (4 mark) g) What is the expected return of the portfolio? (2 mark)