Choose wisely. There is only one correct answer to each question.
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1.
As regards your investment policy statement, investment selection criteria tend to be _______.
Quantitative. These criteria are a means of quantifying your investment philosophy.
2.
The Monitoring Procedures portion of your investment policy statement details _______.
How you will keep tabs on your investments. This the section in which you keep your document accurate and current.
3.
When buying or selling securities, _______.
Your actions should reflect your investment philosophy. Any buying or selling should mesh with your investment philosophy. Focus on that rather than short-term performance or hunches about what the market is going to do next.
4.
What benchmark is most appropriate for a portfolio that is 50% invested in U.S. large-company stocks, 25% in bonds, and 25% in foreign stocks?
A customized benchmark that combines U.S. large-company, bond, and foreign-stock indexes. Choose benchmarks for your portfolio that reflect the makeup of your portfolio.
5.
Which of the following is a question to answer while creating the investment objectives of your investment policy statement?
How long will I be funding this goal? This is an objectives-related question.
