To analyze the given case and then determine how each of the following relates to the determination of either investor objectives or investor constraints that can be used to decide upon the portfolio policies for the three-year period for the Wood Museum Endowment Fund: Liquidity requirements Return requirements Risk tolerance Time Horizon Tax considerations Regulatory and legal considerations Unique needs and circumstances Introduction: Investor objectives are the circumstances that force an investor to select the investment choice like the return requirements and the kind of risk he expects to have in an investment. Investor constraints are those that arise out of these circumstances such as tax considerations, legal requirements and other factors that affect the investment decision.

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Chapter 22, Problem 8CP

Summary Introduction

To Discuss:

To analyze the given case and then determine how each of the following relates to the determination of either investor objectives or investor constraints that can be used to decide upon the portfolio policies for the three-year period for the Wood Museum Endowment Fund:

Liquidity requirements

Return requirements

Risk tolerance

Time Horizon

Tax considerations

Regulatory and legal considerations

Unique needs and circumstances

Introduction:

Investor objectives are the circumstances that force an investor to select the investment choice like the return requirements and the kind of risk he expects to have in an investment. Investor constraints are those that arise out of these circumstances such as tax considerations, legal requirements and other factors that affect the investment decision.

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