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

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

o Market liquidity

o Transaction costs o Specific asset class liquidity o Ability to buy the security on margin o Ability to use short selling o 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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