Answer to Question #92733 in Finance for MELO

Question

Explain in detail how each of the following relates to the determination of either investor objectives or investor constraints that can be used to determine the portfolio policies for this three-year period for the Midlands Museum Endowment Fund also explain the processes in Exhibit A:
 Liquidity requirements
 Return requirements
 Risk tolerance
 Time horizon
 Tax considerations
 Regulatory and legal considerations
 Unique needs and circumstances

Answer 1

Liquidity requirements, return requirements, tax considerations, and regulatory and legal considerations are investor constraints that can be used to determine the portfolio policies and needed to be fulfilled.

Risk tolerance, time horizon, and unique needs and circumstances are investor objectives that should be also considered to determine the portfolio policies.