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Under consideration will be topics such as efficient frontier and optimal portfolios as well as their relevance to investment theory, under the assumption of direct investment in the stock market.
DETERMINING THE PURPOSE OF YOUR INVESTMENT
One of the steps in building an investment portfolio is to establish investment goals. Investment goals are the financial objectives you wish to achieve by investing (Gitman and Joehnk, 2005). In other words, what you want these investments to do for you or why you are investing in the first place. Some common investment goals include (Gitman, et al, 2005): 1) accumulating retirement funds, 2) enhancing current income, 3) saving for major expenditures, or 4) sheltering income from taxes...
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