of the following statements is (are) true with respect
to setting the proper constraints in managing a portfolio?
I. The more certain an investor's financial future,
the less liquidity will be required in the portfolio,
holding everything else constant.
II. The longer the investment horizon, the more emphasis
must be placed on any current expectations with regards
to the relative performance of the various asset
III. It would be imprudent to include many income-oriented
securities in a portfolio that belongs to an investor
in a high tax bracket.
IV. Low levels of sophistication is an indication
that an investor is inexperienced and hence the manager
should overestimate the investor's level of risk
A) II, III and IV only
B) I, II, III and IV only
C) III and IV only
D) I and III only