Question 7 Week 3

Investment StrategiesIt is natural to assume that there is no such(prenominal)(prenominal) topic as a one-size-fits-all enthronisation funds funds scheme that applies equally well for households , corporations , and endowment funds . However , although the strategies for for each(prenominal) one of these argonas should in principle be different and specifically targeted , they each section some very important aspects Thus , it stooge be said that there is indeed a one-size-fits-all strategy , although such a strategy , because of its extrapolate nature is out-of-the-way(prenominal) from optimally efficacious (Merton ,. 22When it comes to households , for good example , some specifics that can be added to the tralatitious analysis of gamble-return trade-offs for tangible wealth including a unhazardous addition incl ude explicit analyses of human capital , hedge of reinvestment pass judgment , mortality and traditional insurance risk , and income and estate taxes (Merton ,br 22 . When it comes to endowment funds , specific assets must(prenominal) again be considered .

A university s endowment funds , for example , would include its buildings , upcoming tuition receipts , and potential gifts and bequests (Merton ,. 23It is oftentimes wiser to utilize investment strategies that are targeted to a specific battleground . In circumstance , there is a tendency among investment managers and advisors to rely upon strategies that a re generally applicable to all triplet , ev! en if such a reliance on generalized strategies is not inevitable . Instead of persisting with this tradition , use more targeted and efficient means can lead to break dance results (Merton ,. 22ReferenceMerton , R . C (2003 . Thoughts on the future : Theory and work in investment management . Financial Analysts Journal , 59 , 1 , 17-23PAGEPAGE 1Investment Strategies...If you call for to get a full essay, revision it on our website: BestEssayCheap.com

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