Basics Beginner: Creating Your Investment Policy Statement

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1.
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.
2.
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.
3.
The investment philosophy section of your investment policy statement tells you _______.
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What is important to you as an investor. This section tends to be subjective.
4.
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.
5.
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.