Consider before designing investment strategies

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Assess two main factors which a portfolio manager should always consider before designing investment strategies. 

Evaluate the appropriateness of using benchmarks in creating optimal portfolios. In your evaluation ensure that you make mention of the importance of incorporating benchmarks such as 

  • The market index 
  • Benchmark normal portfolio 
  • Median of the manager universe. 

Examine three weaknesses of using each of the three benchmarks to measure portfolio performances.

Reference no: EM132404534

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