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4. (a) As a stockbroker, you have been approached by a client seeking to establish a...

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Finance

4. (a) As a stockbroker, you have been approached by a clientseeking to establish a diversified portfolio of domestic shares.After identifying the client’s investment needs, you recommend theclient use an exchange traded fund (ETF) to achieve her investmentobjectives. Explain to the client how an ETF will achieve theobjective of a diversified share portfolio.

(b) The client also wishes to gain an investment exposure to theinternational share markets. Is it possible to use ETFs to achievethis objective? Explain.

Answer & Explanation Solved by verified expert
4.5 Ratings (736 Votes)
a ETFs are exchange traded funds This means that they are basically mutual funds whose units are traded on the exchange Just like mutual funds ETFs can be of several types based on the kind of investments they make They could be equity    See Answer
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