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Exhibit 16.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A portfolio manager is trying to establish a strategic asset allocation for two different clients, Bob Bowman and Tom Luck. Bob Bowman has a risk tolerance factor of 22 and Tom Luck has a risk tolerance factor of 6. The characteristics of the three model portfolios under consideration are provided in the table below.
-Refer to Exhibit 16.1. The recommended portfolio for Tom Luck is
Extended Families
A family group that includes not only parents and children but also other relatives such as grandparents, aunts, uncles, and cousins.
Ethnic Pride
A positive feeling, satisfaction, or loyalty towards one's own ethnic group, often expressed through cultural practices and traditions.
Academic Achievement
A measure of a student's learning and educational attainment in school, college, or university settings.
Self-Discipline
refers to the ability to regulate oneself, including one’s emotions, thoughts, and behaviors, in a way that is consistent with long-term goals.
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