Explain the clients’ risk tolerances.
I. Client Analysis: In this section, you will analyze your clients’ financial documentation and determine their risk tolerance and objectives. To effectively
address the critical elements in this section, you must analyze the information for both client one and client two.
A. Analyze each client’s financial documentation in order to perform the following evaluative activities. Be sure to support your analysis with
relevant client information.
1. Explain the clients’ risk tolerances.
2. Explain the clients’ return objectives.
3. Explain the clients’ liquidity objectives.
B. Using the three objectives above, write a brief investment statement classifying the clients into one of the following categories: growth, income,
or capital preservation. Justify your response with specific client information.
IV. Portfolio Performances
A. Provide a rationale to present to the client for the portfolio you have developed. In your rationale, include specific examples to support your
recommendations, and be sure to address the following:
1. Explain how your recommendations align with the client’s risk tolerance.
2. Explain how your recommendations align with the client’s return objectives.
B. Using the provided ex-post portfolio return statistics, evaluate the portfolio’s performance and compare it to its appropriate benchmark. In your
evaluation, be sure to address the following:
1. Calculate portfolio return.
2. Calculate the Sharpe ratio for the portfolio and benchmark.
3. Calculate the Treynor’s measure for the portfolio only.
4. Calculate Jensen’s measure for the period for the portfolio only.
Attached you will find the required rubric for the essay given by my instructor. Additionally, you will find my current essay that already completes elements #2 and 3. You can add to this essay and/or use this current essay to aid you in completing critical element #4. You will also find another attachment (clients) to help you with answering critical element #1. THANK YOU!