what is a good response from this discussion post in a short paragraphSome of the factors that need to be considered when a financial advisor is assessing a clients investment portfolio include risk tolerance, currency exposure, economic and market cycles, valuation discrepancies and tax considerations. Financial advisors need to determine whether the client is a conservative investor or a growth-oriented investor, whether the client is comfortable with introducing foreign exchange risk, if it is a good time in the market cycle to invest in a certain asset, if options are valued correctly or incorrectly, and if taxes are involved that could significantly affect the net returns. Risks such as currency risk, political risk, liquidity risk and market efficiency need to be considered and weighed into the portfolio such that the impact of such risks do not significantly affect the returns. Volatility in currency risk, unstable governments with unpredictable regulatory environments that add systematic risks, countries with lower liquidity, and developed markets with fewer opportunities present challenges that could affect returns for the clients. Bond allocations should differ from equity allocations in global exposure because equities favor international exposure due to higher return potential and greater diversification benefits. Equity markets are more globally integrated and currency swings often are offset by business operations in multiple countries. However, bonds are less suitable for extensive international exposure. An appropriate model to consider is the Black-Litterma