Portfolio Management

Hi guys, I was just reviewing the portfolio management part for the cfa 1 exam. I found an exercise concerning portfolio diversification, but I am not sure how I should start :confused:

Maybe you have a good idea? :slight_smile:

You are a portfolio manager for the local mutual fund.

You are given $25 m to invest in alternative assets.

You should implement a strategy involving the definition of objectives and constraints. And set as a goal an enhanced return for a given level of risk.

You should put as a priority :

1.Protect against inflation the asset base 2.Allow a portion of the portfolio to earn a regular yield 3.Get portion of the portfolio produce capital gains for the long term. 4.Allow leverage from hedge funds strategies. 5.Propose a strategic and tactical asset allocation out of it.