Q6. The process of elimination can be used to arrive at an individual’s asset allocation. Which step is often considered the first hurdle in the elimination process?

A)   Risk objective.

B)   Return objective.

C)   Liquidity constraint.

答案和详解如下：

Q6. The process of elimination can be used to arrive at an individual’s asset allocation. Which step is often considered the first hurdle in the elimination process?

A)   Risk objective.

B)   Return objective.

C)   Liquidity constraint.

Correct answer is B)

The first step in the elimination process is to select those allocations that at least meet the real after-tax total return objective of the investor. Once that step is completed, then other considerations are addressed.