Which of the following is NOT a typical portfolio constraint?
A) liquidity needs
B) risk tolerance
C) time horizon
D) tax concerns
E) legal factors

Question

Quizplus · Accepted Answer

Risk tolerance is not a constraint but a factor in determining the appropriate investment strategy or asset allocation for a portfolio. Constraints are limitations or requirements that need to be considered when managing a portfolio, such as liquidity needs, time horizon, tax concerns, and legal factors.

Which of the Following Is NOT a Typical Portfolio Constraint