Part 1: Discuss in general terms how age, income, debt level, assets, marital and parental status,...

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Finance

Part 1: Discuss in general terms how age, income, debt level,assets, marital and parental status, risk tolerance, time horizon,and general economic conditions should be taken into considerationwhen constructing an investment portfolio. Why is it important tohave a diversified portfolio?
Part 2: How does the Efficient Market Hypotheses fit in with adiversified portfolio? If the efficient market hypothesis is true,why is it still important to study stock fundamentals closelybefore purchasing any stock?

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Part1 Age Age is a very important factor while constructing an investment portfolio The less is the age more an investor can take the risk as one has more years to earn and invest and hence risktaking ability will be more the The more is age portfolio should have a very less risky asset Income If the income is fixed every month and there See Answer

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Part 1: Discuss in general terms how age, income, debt level,assets, marital and parental status, risk tolerance, time horizon,and general economic conditions should be taken into considerationwhen constructing an investment portfolio. Why is it important tohave a diversified portfolio?Part 2: How does the Efficient Market Hypotheses fit in with adiversified portfolio? If the efficient market hypothesis is true,why is it still important to study stock fundamentals closelybefore purchasing any stock?