Basics Beginner: Creating Your Investment Policy Statement

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1.
Which of the following is a question to answer for the investment philosophy section of your investment policy statement?
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What's my philosophy about risk? Investment philosophy questions tell you what is important to you as an investor.
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.
What benchmark is most appropriate for a portfolio that is 50% invested in U.S. large-company stocks, 25% in bonds, and 25% in foreign stocks?
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A customized benchmark that combines U.S. large-company, bond, and foreign-stock indexes. Choose benchmarks for your portfolio that reflect the makeup of your portfolio.
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.
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.