Fischer case

CFA Level III Portfolio Management
#1

5 of 6

What is the most appropriate course of action for Fischer to suggest with regard to Keller’s target asset allocation?

Modest asset allocation change (+/– 5% to 10% maximum per asset class)

Stronger asset allocation change (+/– 10% to 15% maximum per asset class)

Close to the rational asset allocation (+/– 0% to 3% maximum per asset class)

Beacuse of the emotional biases the portfolio should be adjusted to taker care of it right?

#2

anybody?

#3

I am not sure if I remember correctly the case, but isn’t it one where there is a risk on her living expenses and therefore you need to go with a rational asset allocation despite her emotional biases ?

I may be completely off sorry, what was the answer given by the vignette ?

#4

Stronger asset allocation change (+/– 10% to 15% maximum per asset class)