(a). Explain why individuals should specify investment goals

(b). Differentiate between efficient and inefficient markets

(c). Use the following comment to distinguish between diversification and asset allocation:

“By allocating your assets over different types of assets, you contribute to the diversification of the portfolio.”

(d). The terms allocation and diversification are often used interchangeably, explain the importance of each concept in portfolio management.

Answer rating: 100% (QA)

a Why Individuals Should Specify Investment Goals Individuals should specify investment goals to have a clear understanding of what they want to achieve through their investments Goals provide directi... View the full answer