<div style='margin-bottom: 20px;'> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does active portfolio management differ from passive portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Active management attempts to beat the market by buying and selling assets strategically, while passive management aims to match market returns by mimicking an index.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How can portfolio management be tailored to minimize taxes?</h2> <p style="font-weight: normal; font-size: 1.2rem;">By considering the tax implications of different investments and strategies, such as tax-exempt bonds or the holding period of securities.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the primary goal of portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The primary goal is to maximize the investments' expected return within an appropriate level of risk exposure.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does diversification benefit a portfolio?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Diversification increases a portfolio's overall expected return while reducing its riskiness by owning assets that move in opposite directions.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the key elements to consider in effective portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Asset allocation, diversification, and rebalancing are key elements.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the primary goal of portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The primary goal of portfolio management is to create and maintain a personalized investment plan to meet an individual's key financial goals over the long term.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does asset allocation involve?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Asset allocation involves spreading an investor's money among different asset classes to reduce risks and maximize opportunities.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the role of an investment portfolio manager?</h2> <p style="font-weight: normal; font-size: 1.2rem;">An investment portfolio manager meets with clients to understand their financial situation, goals, and risk tolerance, then creates and manages a personalized investment plan for them.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the two main types of portfolio management strategies?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The two main types of portfolio management strategies are passive investing and active investing.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why is diversification important in portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Diversification spreads risk and reward across various investments, reducing volatility and capturing returns across sectors over time.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What role does rebalancing play in portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Rebalancing returns a portfolio to its original target allocation, capturing gains and reducing risk to align with the investor's risk/return profile.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What distinguishes discretionary from non-discretionary portfolio management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Discretionary management allows a broker to make decisions without the investor's approval, while non-discretionary requires the investor's explicit consent for trades.</p> </div> </div>