CFA三级十年真题 (2008-2017)：level_III_guideline_answers_2013.docVIP

LEVEL III Question: Topic: Minutes: 1 Individual PM 20 Reading References: 10. “Managing Individual Investor Portfolios,” Ch. 2, Managing Investment Portfolios: A Dynamic Process, 3rd edition, James W. Bronson, Matthew H. Scanlan, and Jan R. Squires (CFA Institute, 2007). LOS: 2013-III-4-10-j-m 10. “Managing Individual Investor Portfolios” The candidate should be able to: a) discuss how source of wealth, measure of wealth, and stage of life affect an individual investor’s risk tolerance; b) explain the role of situational and psychological profiling in understanding an individual investor; c) compare the traditional finance and behavioral finance models of investor decision making; d) explain the influence of investor psychology on risk tolerance and investment choices; e) explain the use of a personality typing questionnaire for identifying an investor’s personality type; f) compare risk attitudes and decision-making styles among distinct investor personality types, including cautious, methodical, spontaneous, and individualistic investors; g) explain the potential benefits, for both clients and investment advisers, of having a formal investment policy statement; h) explain the process involved in creating an investment policy statement; i) distinguish between required return and desired return and explain the impact these have on the individual investor’s investment policy; 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) discuss 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; m) determine the strategic asset allocation that is most appropriate for an individual investor’s specific investment objectives and constraints; n) compare Monte Carlo and traditional deterministic approaches to retirement pl