Characterize of the investment objectives

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Characterize each of the investment objectives given below as one of the following: an absolute risk objective, a relative risk objective, an absolute return objective, or a relative return objective.

(a) Achieve rate of return 12 percent a year.

(b) Limit the standard deviation of portfolio returns to 20 percent a year or less.

(c) Achieve returns in the top quartile of the portfolio's peer universe (the set of portfolios with similar investment objectives and characteristics.

(D) Maintain a 10 percent or smaller probability that the portfolio's return falls below the threshold level of 5 percent per annum over a one-year time horizon.

(e) Achieve a tracking risk of no more that 4 percent per annum with respect to the portfolio's benchmark.

Reference no: EM132494282

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