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1.
Which of the following is a question to answer for the Monitoring Procedures section of your investment policy statement?
How will I determine how well my overall portfolio is doing? This question will help you monitor your investments.
2.
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.
3.
The investment philosophy section of your investment policy statement tells you _______.
What is important to you as an investor. This section tends to be subjective.
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.
Investment selection criteria are _______.
Both of the above. Develop your investment selection criteria as rules for choosing investments. Then, as you monitor your portfolio, make sure that your investments continue to hold the qualities that you bought them for. If they don't, consider selling.
