Portfolio Development and Analysis
Free CFP Exam lesson in Investment Planning. 12 min read, ~1,836 words.
The IPS governs every portfolio decision: return objectives + risk objectives + five constraints. When risk tolerance and capacity conflict, the lower one governs, always. Nominal return = (1 + real) x (1 + inflation) - 1. The additive shortcut is always a trap answer. Sharpe ratio for the whole...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- D.33
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