Explain the interactions between objectives and constraints in investment management.

A

These interactions are generally defined by the factor of the client’s utility function and financial safety behaviour factors. Thus, for the gross investor, the most important characteristic to be identified is the degree of risk aversion or risk tolerance. The next interaction factor is the style and strategy of the investment company. Depending on the aims, pursued by the company, the interaction between values and principles of investment practices vary. Finally, the necessity to correlate the indexes is one of the defining factors for the interaction.

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Academic.Tips. (2022, January 13). Explain the interactions between objectives and constraints in investment management. Retrieved from https://academic.tips/question/explain-the-interactions-between-objectives-and-constraints-in-investment-management/

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Academic.Tips. 2022. "Explain the interactions between objectives and constraints in investment management." January 13, 2022. https://academic.tips/question/explain-the-interactions-between-objectives-and-constraints-in-investment-management/.

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Academic.Tips. "Explain the interactions between objectives and constraints in investment management." January 13, 2022. https://academic.tips/question/explain-the-interactions-between-objectives-and-constraints-in-investment-management/.

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"Explain the interactions between objectives and constraints in investment management." Academic.Tips, 13 Jan. 2022, academic.tips/question/explain-the-interactions-between-objectives-and-constraints-in-investment-management/.

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