Define a passive portfolio construction strategy and briefly discuss how reasonable it might be for an investor to pursue a passive strategy. 


Explain the role of risk aversion in the construction of an optimal complete port- folio. If you were a wealth manager, trying to build an optimal portfolio for a client, how could you gauge the degree of risk aversion of your client?

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a Passive portfolio construction strategy Passive portfolio management can be referred to as index fund management It is designed to parallel the retu... View the full answer