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:

Bloodstream

The flowing blood within the circulatory system of the body, transporting oxygen, nutrients, and waste products.

Collagenous Fibers

Strong, flexible fibers made of collagen that are a major component of connective tissue in the body.

Ligaments

Strong, fibrous tissues that connect bones to other bones, providing stability and support in joints.

Superficial Portion

The part of a structure or organ that is closest to the surface of the body.