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QUESTION FOUR (10 POINTS) What is an appropriate investment objective for typical 25-year-old investor? Assume he holds a steady job, is a valued employee, has

QUESTION FOUR (10 POINTS)

  1. What is an appropriate investment objective for typical 25-year-old investor? Assume he holds a steady job, is a valued employee, has adequate insurance coverage, and has enough money in the bank to provide a cash reserve. Lets also assume that his current long-term, high-priority investment goal is to build a retirement fund.

(b) Describe two major factors that a portfolio manager should consider before designing an investment strategy. What types of decisions can a manager make to achieve these goals?

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