土豆妮

The objective of achieving a 10% annual rate of return is an example of a(n):

A) absolute risk objective.

B) required return objective.

C) relative return objective.

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The objective of earning a 10% return is a required return objective because it represents some level of return that must be acheived by the portfolio.

土豆妮

Investor objectives relate to which of the following? Evaluating:

A) capital market and security factors.

B) risk and return factors.

C) asset allocation and security factors.

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Investor objectives relate directly to the risk and return factors acceptable to the investor. Risk factors are associated with how much risk the investor can tolerate. Return factors relate to required and desired returns.