Multiple choice

Which of the following is not a step to develop a model portfolio for an investor?

  1. Develop goals

  2. Discuss with clients relatives

  3. Determine asset allocation

  4. Determine sector distribution

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When developing a model portfolio, advisors work directly with the client to understand goals, risk tolerance, and constraints. Discussing with the client's relatives is not a professional or ethical step in the portfolio development process.