Portfolio Management

Portfolio management questions on the Series 7 focus on matching strategy to client objectives, then measuring whether the portfolio is doing what it should. This chapter moves from objectives and constraints into asset allocation, rebalancing, and performance measurement.

That sequence is practical. Representatives first identify what the client is trying to accomplish, then build and monitor the portfolio in a way that stays aligned with those goals.

In this section

• Investment Objectives and Constraints
  Define client goals, time horizon, liquidity needs, taxes, and risk constraints in portfolio planning.
• Asset Allocation Strategies
  Review strategic and tactical allocation approaches and their effect on portfolio risk and return.
• Portfolio Rebalancing
  Understand rebalancing methods, tradeoffs, and how rebalancing supports long-term portfolio discipline.
• Performance Measurement
  Review benchmarks, total return, and risk-adjusted performance measures such as Sharpe and Treynor.