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Portfolio 108: Creating Your Investment Policy Statement

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1.
The Monitoring Procedures portion of your investment policy statement details _______.
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How you will keep tabs on your investments. This the section in which you keep your document accurate and current.
2.
Which of the following is a question to answer for the investment philosophy section of your investment policy statement?
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What's my philosophy about risk? Investment philosophy questions tell you what is important to you as an investor.
3.
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?
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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.
4.
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.
5.
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.