Guide to DEA model formulation

Abstract

Most industrialized nations have “know your customer or client” (KYC) regulations as part of the due diligence requirements placed on investment dealers and advisors. There are generally three parts to implementing KYC rules: (a) determining a client’s risk tolerance, (b) understanding the risk/return attributes of available investments, and (c) using the information from the first two parts to suggest suitable investments and portfolios for clients.