Which of the following are characteristics of an effective portfolio strategy?
A) level and stability of income
B) investment time horizon
C) investment experience and age
D) disposition toward risk
E) all of the above

Question

Quizplus · Accepted Answer

All of the choices listed are important characteristics to consider when creating an effective portfolio strategy. The level and stability of income will determine how much risk the investor can afford to take, while the investment time horizon will influence the types of investments chosen. Investment experience and age will also affect the level of risk an investor is comfortable with, as well as their understanding of different kinds of investments. Finally, an investor's disposition toward risk is a key factor in determining the appropriate mix of assets for their portfolio. All of these factors must be considered when developing an effective portfolio strategy.

Which of the Following Are Characteristics of an Effective Portfolio