Basics Beginner: 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.
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.
3.
Which of the following items would be part of the investment selection criteria of your investment policy statement?
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Minimum tax-efficiency ratio. The investment selection criteria are quantitative in nature.
4.
The investment objectives portion of your investment policy statement covers what you're trying to achieve with your portfolio.
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True. It's all about goals.
5.
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.