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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Joan McKay is a portfolio manager for a bank trust department. McKay meets with two clients, Kevin Murray and Lisa York, to review their investment objectives. Each client expresses an interest in changing his or her individual investment objectives. Both clients currently hold well-diversified portfolios of risky assets. (LO 7-1)
www.mhhe.com/bkm
Murray wants to increase the expected return of his portfolio. State what action
McKay should take to achieve Murray’s objective. Justify your response in the context of the capital market line.
York wants to reduce the risk exposure of her portfolio but does not want to engage in
borrowing or lending activities to do so. State what action McKay should take to achieve York’s objective. Justify your response in the context of the security market line.
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