Which of the following best describes asset management?

The choice that best describes asset management is indeed managing investments on behalf of clients for specific goals. Asset management involves professionals managing a portfolio of investments, which can include stocks, bonds, real estate, and other assets, with the objective of achieving desired financial outcomes based on the clients' unique investment goals and risk tolerance. This can involve creating tailored investment strategies that align with the client’s objectives, whether those are for retirement, wealth preservation, or capital growth.

In contrast, investing in real estate properties is a specific type of investment strategy and does not encapsulate the broader concept of asset management, which can encompass various asset classes. Trading financial instruments on a speculative basis refers to a strategy that focuses on short-term trades and profit-taking rather than long-term management and strategic growth, which is a component of asset management but does not represent its overall goal. Lastly, focusing solely on high-risk investments is contrary to the practice of asset management, which typically aims to balance risk and return according to the client’s profile, rather than concentrating exclusively on high-risk options.