Client Profiles, Capital Market Theory, and Strategy

Free NASAA Series 66 (Uniform Combined State Law Examination) lesson in Client/Customer Investment Recommendations and Strategies. 19 min read, ~2,902 words.

Suitability requires goals, risk tolerance, time horizon, tax status, and liquidity needs, gathered before any recommendation, documented in writing. MPT diversifies away unsystematic risk by combining low-correlation assets; the efficient frontier shows the highest return per unit of risk. EMH has three forms: weak (price history useless), semi-strong (public info...

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