Sample Solution

2. Price Movement Information- Price fluctuations affect the pattern of investing. It is said that volatility in prices and manipulation is the main cause of worry for retail investors.
3. Risk Aversion- Investors have different capacity to bear risk hence have different types of investment and individual who expects to generate higher return will invest in the securities with high risk whereas, risk avoiding investors will invest in securities with lower risk. It is suggested that risk tolerance level decreases with the increase int age of the investor.
4. Risk -Taking Capacity- Investors invest in volatile investments in order to get higher profits than average.
5. Profitability- When investor invest their money, their main purpose is to earn profit on it. They do not hesitate to invest on risky securities because they think that high risk can give them higher return. Level of annual earnings/ income and their savings affect the decision making of an investor.

Functions of Traditional Portfolio Manager
Portfolio manager is an individual who develops and implements investment strategies for individual or institutional investors. Usually, Portfolio manager positions are in line with hedge funds, pension plans and private investment firms or as part of an investment department of an insurance or mutual fund company.
In most cases, a portfolio manager follows a pre-determined for investment dictated by an investment policy statement to achieve a clients objective. The traditional portfolio management requires basic knowledge and understanding in field of the financial investment.
Roles and Responsibilities of a Portfolio Manager:
• A Portfolio manager is responsible for making and individual aware of the various investment tools available in the market
• A Portfolio manager is responsible designing customised investment solutions for the clients
• A Portfolio manager must keep himself updated with the latest changes in the financial market
• A Portfolio manager ought to be unbiased and tough professional
• A Portfolio manager needs to be good decision maker along with co