Translating the aspirations and circumstances of diverse households into appropriate investment decisions is a daunting task. The task is equally difficult for institutions, most of which have many stakeholders and often are regulated by various authorities. The investment process is not easily reduced to a simple or mechanical algorithm. (a) Outline and discuss the ideal investment process. How should an investor, whether individual or institutional, systematically go about investing? Why is taking such an approach necessary? (b) Consider your parents or others in their generation. List and discuss what would be their objectives and constraints for their investment decisions. (c) Consider yourself to be in your 20s or 30s. List and discuss what investment objectives and constraints would fit your investment decision and Discuss the reasons and/or factors for the differences between your answers for (b) and (c).
Translating the aspirations and circumstances of diverse households into appropriate investment decisions is a daunting task. The task is equally difficult for institutions, most of which have many stakeholders and often are regulated by various authorities. The investment process is not easily reduced to a simple or mechanical algorithm.
(a) Outline and discuss the ideal investment process. How should an investor, whether individual or institutional, systematically go about investing? Why is taking such an approach necessary?
(b) Consider your parents or others in their generation. List and discuss what would be their objectives and constraints for their investment decisions.
(c) Consider yourself to be in your 20s or 30s. List and discuss what investment objectives and constraints would fit your investment decision and Discuss the reasons and/or factors for the differences between your answers for (b) and (c).
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