6 Consider two situations, a young man X in his early twenties– and single another young man, Y, in his late thirties–married with responsibilities. X and Y earn the same amount of money. Y has a family, a house, a car and all the encumbrances associated with the marital status. Both of them like to invest in securities. What would be their constraints and objectives? 10 Marks
Answer:- In the given situation X can be identified responsibility free young man whereas Y is a middle aged responsibility clad man. So their investment behavior is bound to be different given their differences in current situation. Married man is less likely than single man to choose a riskier portfolio.
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