A portfolio plan should
A)seek to maximize the portfolio's value,regardless of risk.
B)consider the investor's goals and risk-tolerance level.
C)try to make the most possible money in the shortest possible time.
D)specify general,rather than concrete,objectives.

Question

Quizplus · Accepted Answer

A portfolio plan should consider the investor's goals and risk-tolerance level by balancing risk and return. Maximizing portfolio value without taking into account an investor's tolerance for risk could result in significant losses and does not align with the investor's goals. Attempting to make the most money in the shortest time also increases risk and volatility, which may not be suitable for all investors. Specific, concrete objectives are essential for effective portfolio planning.

A Portfolio Plan Should