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Portfolio 108: Creating Your Investment Policy Statement

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1.
What does the executive summary portion of the investment policy statement do?
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It summarizes your current situation and what you expect from your portfolio. In other words, it's a snapshot.
2.
Investment selection criteria are _______.
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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.
3.
Which of the following is a question to answer for the Monitoring Procedures section of your investment policy statement?
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How will I determine how well my overall portfolio is doing? This question will help you monitor your investments.
4.
When buying or selling securities, _______.
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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.
5.
The investment objectives portion of your investment policy statement covers _______.
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What you're trying to achieve with your portfolio and in what time frame. It's all about goals.