Question: When managing a portfolio one has to consider various issues such as: Market liquidity Transaction costs Specific asset class liquidity Ability to buy the security

When managing a portfolio one has to consider various issues such as:

Market liquidity

Transaction costs

Specific asset class liquidity

Ability to buy the security on margin

Ability to use short selling

Fee structure impact on the portfolio performance

Explain how each of the above issues can influence the way you manage a portfolio (either equity or fixed income portfolios).

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