Asset Allocation and Portfolio Diversification

Question 1

Tax free yield

Answer 1

tax equivalent yield = tax free rate / (1−tax bracket)

Question 2

To understand the client use RRTTLLU

Answer 2

R - Risk (Ability to take Risk and Willingness to take Risk)
R - Return
T - Timeframe
T - Taxes
L - Legal
L - Liquidity
U - Unique circumstances