ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment Manual
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Investment Strategy
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Investment Plan
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None of the above
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Detailed explanation-1: -Portfolio selection aims to assess a combination of securities from a large quantity of available alternatives. It aims to maximize the investment returns of investors. According to Markowitz (1952), investors must make a trade-off between return maximization and risk minimization.
Detailed explanation-2: -Rule Number 1: Diversify. Since some investments zig when others zag, divvy your money across several investment categories, from stocks to bonds to real estate. Rule Number 2: Rebalance. Rule Number 3: Dollar-cost average. Rule Number 4: Keep costs down.
Detailed explanation-3: -Avoid incomplete strategies. Build an actionable strategy. Don’t buy in to bubble plots. Move beyond prioritization. Use a variety of methods. Present a range of compelling portfolios. Ask the right question. Build risk into your forecast.
Detailed explanation-4: -If you can’t afford to invest yet, don’t. It’s true that starting to invest early can give your investments more time to grow over the long term. Set your investment expectations. Understand your investment. Diversify. Take a long-term view. Keep on top of your investments.