_ | ae ] : pen Parl emenoh ie cio | Brief Client descnplion —> Background Check ol client Nal we of worle given to manag er decides ae L uch chieek formation ik reguted ©. furpese ob esteblihing polices and guidelines —>_ Conlra fo whel bos w @_vties and investment res porsibilil'es oF paches involved @,_ Statement of investment goals, objech ves and constants Gl Wediedsele Clr ed's Cades) rt pe Yolunac Wad Gasesinedh pliy sk ©) Pectomaice measvres and Benchmark Q@| Developing strategic qeset allocation . | 29} 8|2024) Zavestment Hanagement Povess ! | Objectives : || Aececs the level of isk inveslrs can tolerate in pusuit af higher robin | Objectives and righ tolerance diHler. _ ~— + Individval Investors Actions . D) tedvidval’ Peycholegize! Hokey CSpolien difleren) fom Reval | *y P f A quessionaire ig Yhere to assess he risk profile . | Objechies —> i) Capital Reservahion —>~ Above 60 years net havea income ick Tolerance, _) Corent Yacome __—> Above 60 years not having income f D_Oher factors like ingurance coverage, funds aveilable and $0 on --- Rebin Reovirement 2)_Copitel Appreciation —> For yourgeters just started! to earn. 4) Total Return Strategy |Mabix of Objectives —> From Textboole. | Risk Profiling Guedionnaire __EMy Score 21] I bess than 10 Conservative f = MI fol Faily Congervative : J eI Mederat | | 20 fo 24 Average 25 above Aggressive - ar__ Bulle Selling happen informahon Long Horizon —> Less liguidihy , tolerate great risk { Short Horizon —> Hore Liovidity, tolerate less risle_ ) Regulations + Peodent Investor Rule @_Tax Considerations @ Unique Needs —> Reshictions in ony sector Lanimal hurhing J | Working in game profession I sector #1 Objectives and Conshaints becomes He hase for Ke policies | shategy | policie LD Asset Allecation I ; « Specity Asset Cli 83 {+ Specity Asset Chess beta 4 What _, whol poly Sergi , allevalle alealon anges on policy weigh Conus!) elie says specie secutive or finds should be parkosed linked 4 Lor poiblia. | Le Specily capital market expectalion + Derive he eflicent portlelio tronbier. + Find He oghmal asset mix + Manage Taxes . ew Assignment You are required to identify the financial sitvation of your parents. Werte down 4 you the objerlives and conshainls of their investment decisions 1a Financial _silvalion of yourclesest relabive who & in his or Write down fhe objeclves and constants Hat would Gi his or her —Now consi | _her 305 .ale Paqe von hele 8 sy zz ____How much_di Herence belween He two BeaY 5 dee foe age 2 ti Pllecahion H|_Zdenhify the asset allecation of te aplimal portelio at a point in time | chess. composition | nmin he expected Tetum and risk faterance— less contloled Fisk) __2re mulhigle ere 18 an in toente ef ong y the negative correlation between aSSet class is beter, because they both will hag | inverse Eelahencip and te portfolic vill be diversified . Buin case of posihie | cerrelahion'<\ ‘he asset class will move inthe some lirechion which will net diversify | He portlli ere 15 mo —weig isk—but i assets en each otker— 77 Bel te celevlate_muliple assets correlation in a port Prowkock i not possible (Limitation of Harkovite model | whicl led te usage and foundation of CAPM . Syske mabic Risk —> Beta used in CAPM to only capture His risk, unsystemabic risk can be divecsified . — ae TF yeu wont 4 evaluele q Find Manager, just look at the Alpha . a AG Sate febens => tow Level of Risk) ale : A Seme_Aish

(025d) slo burayulorexte) = 063 io - {| : 65 , Debt allocation = (0.15 x5) + (6.5X20)+ (02S x40) = 2-37 — ; bs - |__Afler calculating this new allecahon, meet wih the chient ancl E Q fostpene the goal —> increase hme horizon - © Bring in_more investment nds to reduce risk or maintan risk level | @ Tnerease your rik tolerance andl con't invest more . | @ P| Resurrection of Time Divecsiticahon oe 4 Asset Mlocalion Shdegies —> Evolving Haiket Candiliong °° ora cen ° eae Tach eal A ion iPr [D Techeal Asset Alecat © Dithag Masel Mecakon Cork era y Always maintain inibeal porNohio at Market Hing , mean reversion , conlir Pe gt eandivens lai Buy ant hold policy @ Balanced Asset Alecahion Stocks? Bonds [ Periedical rebalncing ef portleh’o a + wide me Steck bond mi sin ling with if = leng term ‘normal -mix? Be |] Rel ore eth _heee the composition bas te be manloned aan Additonal for: aS bil mags + does ( fads hes te be bough in mete purloced Yo you con eri Te pation Purp i more monty a etl