Choose wisely. There is only one correct answer to each question.
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1.
As regards your investment policy statement, investment selection criteria tend to be _______.
Quantitative. These criteria are a means of quantifying your investment philosophy.
2.
Which of the following is a question to answer while creating the investment objectives of your investment policy statement?
How long will I be funding this goal? This is an objectives-related question.
3.
Which of the following is a question to answer for the Monitoring Procedures section of your investment policy statement?
How will I determine how well my overall portfolio is doing? This question will help you monitor your investments.
4.
The investment philosophy section of your investment policy statement tells you _______.
What is important to you as an investor. This section tends to be subjective.
5.
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?
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.
