Asked by Joshua Skelton on Jun 13, 2024
Verified
Which of the following is the least likely to be included in the portfolio management process?
A) monitoring market conditions and relative values
B) monitoring investor circumstances
C) identifying investor constraints and preferences
D) organizing the investment management process itself
Portfolio Management Process
The structured approach of managing investments including planning, implementation, and monitoring to achieve specific financial objectives.
Investment Management Process
The series of steps and decisions involved in managing an individual's or institution's investments, from setting objectives to selecting assets and monitoring performance.
- Familiarize oneself with the methodologies employed in investment management, especially the contrast between active and passive portfolio management.
- Appreciate the ethical and regulatory frameworks guiding investment practices and their implications for portfolio management.
Verified Answer
AA
Adriana AshfordJun 19, 2024
Final Answer :
D
Explanation :
Organizing the investment management process itself is not typically considered as part of the portfolio management process, as it is more focused on the administration and logistics of managing investments rather than the actual decision-making and analysis involved in constructing and managing a portfolio. The other options (monitoring market conditions and relative values, monitoring investor circumstances, and identifying investor constraints and preferences) are all important and commonly included in the portfolio management process.
Learning Objectives
- Familiarize oneself with the methodologies employed in investment management, especially the contrast between active and passive portfolio management.
- Appreciate the ethical and regulatory frameworks guiding investment practices and their implications for portfolio management.