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The four steps in the portfolio management process are:

  1. Establishing Investment Objectives: Define the investor's goals, risk tolerance, and time horizon.
  2. Asset Allocation: Determine the appropriate mix of asset classes (such as stocks, bonds, and cash) that align with the investment objectives.
  3. Portfolio Construction: Select specific investments within each asset class to build a diversified portfolio.
  4. Monitoring and Rebalancing: Regularly review portfolio performance and make adjustments as necessary to stay aligned with the investment objectives and market conditions.
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