The first quiz that I took was the take my managing financial businesses quiz for me 2. I started off by asking a series of questions about the types of financial services that I would be providing if I was a manager at a small investment bank. After answering these questions I was prompted with the types of questions that I would need to answer if I were planning to work at a hedge fund or other large investor-owned asset management firm. These questions asked about things like: What types of investments do I favor? What are some of the strategies that I use?
The next section that I turned to when I started taking the quiz was about what I would need to know to be a good portfolio manager. This question asked about the different investment strategies that I would use, what types of investments are good for my type of portfolio, what strategies should I look into for the various sectors that I own, what are my weaknesses, what are my strengths, etc. Along with this section I was also asked what I had planned to do once I got into the investment management profession. My response to this was about how I was planning on retiring from my current job and how I wanted to invest my retirement money. This was my hope and wish to invest the majority of it in the stock market so that I could make a nice nest egg for my later years.
When I started to complete the questions for the take my managing financial businesses quiz I was surprised to see that one of the questions was about a mandatory performance appraisal. My assumption was that this question was only being asked of people who manage a portfolio that is hundreds or thousands of dollars. The actual question was something like, what do you think your risk tolerance is? And if your tolerance is low you might want to think about increasing your portfolio size. And if your tolerance is very high you might not want to increase your portfolio size.
I didn’t feel that I had very good answers to these questions. I did a little bit of research and there are some excellent books that teach portfolio analysis. One book that comes to mind is Money Management Today by Anthony Scaramanca. But, with the economy the way it is today I doubt that anyone has time to read one of the many books available on the subject. So, I turned to an answer that I got from a very well known source on the internet, which is a management consulting company.
They recommended that I take my managing financial businesses quiz for me 2 times annually. And I do have two investments that fall within the parameters of what they suggested. I know that having multiple portfolios is a good idea because then you can diversify your risk level. We all know that when we buy things that we tend to put our eggs in a basket that is filled with things that are safe like U.S.D.A. bonds or CDs.
My portfolio analysis gives me the numbers so that I can make better decisions about my investments. It tells me whether to add cut, or get rid of any financial asset. When I take my managing financial businesses quiz for me 2 times each year it keeps me in touch with the current value of my portfolio, which allows me to make quick changes if necessary.
If you are like me who wants to stay on top of my investing activities then the answer to the question of when to take my managing financial businesses quiz for me 2 times each year is now. It’s easy to forget when you have a day job and a night job. And when you have multiple streams of income it can be difficult to keep track of everything. And as with all good investment strategies, the more you use your money the better off you are going to be.
