Basics Beginner: Creating Your Investment Policy Statement

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1.
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.
2.
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.
3.
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.
4.
Which of the following is a question to answer while creating the executive summary of your investment policy statement?
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How many years will I be investing? This question must be answered in the executive summary.
5.
The Monitoring Procedures portion of your investment policy statement details how you will keep tabs on your investments.
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True. This is the section that covers how you will keep things in line with your executive summary.