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
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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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