Q1. Which of the following is NOT a rationale for the importance of the policy statement in investing? It: A) identifies specific stocks the investor may wish to purchase. B) helps investors understand the risks and costs of investing. C) forces investors to understand their needs and constraints.
Q2. Which of the following best describes the importance of the policy statement? It:
A) states the standards by which the portfolio's performance will be judged. B) outlines the best investments. C) limits the risks taken by the investor.
Q3. Which of the following is NOT a rationale for the importance of the policy statement in investing? It:
A) allows the investor to judge performance by objective standards. B) forces investors to take risks. C) specifies a benchmark against which to judge performance.
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