CFA Level 1: Study Session 19. Portfolio Management (2) - Reading 54. Basics of Portfolio Planning and Construction

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

	1. The Investment Policy Statement and its Major Components a. describe the reasons for a written investment policy statement (IPS); b. describe the major components of an IPS;
	2. Investment Risk and Return Objectives, and Risk Tolerance c. describe risk and return objectives and how they may be developed for a client; d. distinguish between the willingness and the ability (capacity) to take risk in analyzing an investor's financial risk tolerance;
	3. Investment Constraints e. describe the investment constraints of liquidity, time horizon, tax concerns, legal and regulatory factors, and unique circumstances and their implications for the choice of portfolio assets;
	4. Portfolio Construction f. explain the specification of asset classes in relation to asset allocation; g. describe the principles of portfolio construction and the role of asset allocation in relation to the IPS.

I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.

No flashcard found. Add a private flashcard for the reading.