A
To explain: Objectives and constrains of the investment policy.
Introduction: F is the president of the R firm, having as a salary. She has no family and no residue debts. For the investment some constrains are used like risk management, benchmarks etc.
B
To explain: Demerits of coastal proposal in investment policy.
Introduction: A coastal method is used to investment for person S, but this method gets failure.
C
To explain: Suitability of allocation of assets.
Introduction: Best allocation of the assets is decided by the low risk management with high returns after a period of time.
D
To calculate: Sharpe ratio for the investment portfolio.
Introduction: Sharpe ratio is defined as the risk premium with respect to the total risk of the portfolio. In other words Sharpe ratio is also called as reward to volatility ratio.
E
To explain: Justify the selection of asset allocation.
Introduction: Best allocation is that allocation which provides higher returns with minimum risk in portfolio.

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