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.

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Definitions:

Attributional Styles

Tendencies of individuals to attribute causes to their successes and failures in a particular way that can affect their motivation and emotional state.

Helplessness

A state of being unable to prevent or avoid negative situations or feelings, often leading to a lack of self-efficacy.

Hopelessness

A state of despair characterized by a lack of optimism about the future and a belief that current difficulties or suffering will not improve.

Early Childhood

A developmental period in a human's life from birth to the age of 8, characterized by rapid physical, cognitive, and social growth.