You Are Managing a Portfolio That Consists of U

question 39

Essay

You are managing a portfolio that consists of U.S.equities.You have prepared a presentation to use when you discuss the possibility of adding international stocks to your client's portfolio.
- Draw a graph that shows the risk of the portfolio relative to the number of stocks held in the portfolio.
- When your client arrives, he is surprised at your suggestion that he add international stocks, but is willing to listen to your statements to justify your recommendations.State two reasons why he should consider the international stocks and briefly explain each.

---

Definitions:

Cognitive Functioning

The cognitive activities that enable the acquisition of knowledge and understanding, encompassing activities such as thinking, recognizing, recalling, evaluating, and solving problems.

Breastfed Children

Infants who receive nourishment through their mother's breast milk, which can contribute to developmental and health benefits.

Immune-related Diseases

Conditions or diseases that result from abnormal activity of the body's immune system, either through autoimmunity, hypersensitivity, or immunodeficiency.

Fontanels

"Soft spots," or spaces, that separate the bones of the skull prenatally and in early infancy.