“MANAGING INDIVIDUAL INVESTOR PORTFOLIOS” THE CANDIDATE SHOULD BE...

15. “Managing Individual Investor Portfolios” The candidate should be able to: j) explain how to set risk and return objectives for individual investor portfolios and discuss the impact that ability and willingness to take risk have on risk tolerance; k) identify and explain each of the major constraint categories included in an individual investor’s investment policy statement; l) formulate and justify an investment policy statement for an individual investor; n) compare and contrast traditional deterministic versus Monte Carlo approaches to retirement planning and explain the advantages of a Monte Carlo approach. LOS: 2008-III-4-20-c, d