Investment StrategiesIt is natural to assume that there is no such(prenominal)(prenominal) liaison as a one-size-fits-all enthronization funds funds scheme that applies equally well for households , corporations , and endowment funds . However , although the strategies for individually of these argonas should in principle be different and specifically targeted , they distributively section some very important aspects Thus , it sack up be said that there is indeed a one-size-fits-all dodging , although such a strategy , because of its generalise nature is furthermost from optimally efficacious (Merton ,. 22When it comes to households , for mannequin , some specifics that can be added to the tralatitious analysis of peril-return trade-offs for tangible wealth including a safe addition include explicit analyses of human capital , hedge of reinvestment pass judgment , mortality and traditional insurance risk , and income and estate taxes (Merton ,br 22 . When it comes to endowment funds , specific assets must(prenominal) again be considered .
A university s endowment funds , for example , would include its buildings , upcoming tuition receipts , and potential gifts and bequests (Merton ,. 23It is some(prenominal) wiser to utilize investment strategies that are targeted to a specific vault of heaven . In circumstance , there is a tendency among investment managers and advisors to rely upon strategies that are generally applicable to all terzetto , even if such a reliance on ! generalized strategies is not inevitable . Instead of persisting with this tradition , using more targeted and efficient means can lead to come apart results (Merton ,. 22ReferenceMerton , R . C (2003 . Thoughts on the future : Theory and go for in investment management . Financial Analysts Journal , 59 , 1 , 17-23PAGEPAGE 1Investment Strategies...If you call for to get a full essay, mark it on our website:
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