Choose wisely. There is only one correct answer to each question.
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1.
Which of the following items would be part of the investment selection criteria of your investment policy statement?
Minimum tax-efficiency ratio. The investment selection criteria are quantitative in nature.
2.
What does the executive summary portion of the investment policy statement do?
It summarizes your current situation and what you expect from your portfolio. In other words, it's a snapshot.
3.
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.
4.
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.
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.
