Basics Beginner: Creating Your Investment Policy Statement

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following is a question to answer while creating the investment objectives of your investment policy statement?
Choose wisely. There is only one correct answer.
How long will I be funding this goal? This is an objectives-related question.
2.
Which of the following is a question to answer for the Monitoring Procedures section of your investment policy statement?
Choose wisely. There is only one correct answer.
How will I determine how well my overall portfolio is doing? This question will help you monitor your investments.
3.
The investment philosophy section of your investment policy statement tells you _______.
Choose wisely. There is only one correct answer.
What is important to you as an investor. This section tends to be subjective.
4.
Investment selection criteria are _______.
Choose wisely. There is only one correct answer.
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.
5.
Which of the following is a question to answer while creating the executive summary of your investment policy statement?
Choose wisely. There is only one correct answer.
How many years will I be investing? This question must be answered in the executive summary.