QUESTION THREE: PORTFOLIO MANAGEMENT According to the theory of Portfolio Management, individuals or investors could be said to pass through four lifecycle stages and individual preferences. These stages could be viewed as being the basic factors affecting individual investor return requirement & risk tolerance. Closely related to the age of investor, is the decision on Asset Allocation. As individuals approach retirement, they become more risk-averse Required a) Based on the above paragraph, i. Outline 3 factors that are vital in the asset allocation decision(3 marks) QUESTION THREE: PORTFOLIO MANAGEMENT According to the theory of Portfolio Management, individuals or investors could be said to pass through four lifecycle stages and individual preferences. These stages could be viewed as being the basic factors affecting individual investor return requirement & risk tolerance. Closely related to the age of investor, is the decision on Asset Allocation. As individuals approach retirement, they become more risk-averse Required a) Based on the above paragraph, i. Outline 3 factors that are vital in the asset allocation decision