Asked by Oddalys Guerrero on May 07, 2024
Verified
The first step any investor should take before beginning to invest is to ________.
A) establish investment objectives
B) develop a list of investment managers with superior records to interview
C) establish asset allocation guidelines
D) decide between active management and passive management
Investment Objectives
The financial goals that guide an investor's decisions, including risk tolerance, time horizon, and return expectations.
Asset Allocation Guidelines
Framework for distributing an investor's portfolio among different asset categories.
- Determine the elements that affect the investment period duration and their effect on investment decisions.
- Understand the tactics used in investment management, focusing on the differences between active and passive portfolio strategies.
Verified Answer
DS
Dakota SpradlinMay 08, 2024
Final Answer :
A
Explanation :
The first step any investor should take before beginning to invest is to establish investment objectives. This will help the investor to determine the type of investments to make, their risk tolerance level, and the time horizon for investing. Once the investment objectives are established, the investor can then move on to developing an asset allocation plan, deciding between active and passive management, and researching investment managers.
Learning Objectives
- Determine the elements that affect the investment period duration and their effect on investment decisions.
- Understand the tactics used in investment management, focusing on the differences between active and passive portfolio strategies.