答案和详解如下： Q1. Which of the following represents the process involved in creating an investment policy statement?
A) Evaluate objectives, capital market expectations, and investment strategies. B) Determine constraints and formulate investment strategies. C) Evaluate objectives and constraints and combine them with capital market expectations. Correct answer is C) Objectives and constraints are evaluated, and when they are combined with capital market expectations, the investment policy statement is created. Q2. Which of the following statements regarding the investment policy statement is FALSE? An individual’s investment policy statement:
A) differs from an institution's in that taxes play a more prominent role. B) differs from an institution's in that time horizon plays a more prominent role. C) is exactly the same as that of an institution's. Correct answer is C) An individual’s investment policy statement differs from an institution’s in that time horizon, taxes, and unique circumstances play a more prominent role. The overall process is the same. Q3. Bill Litner, CFA has been hired by Terrific Tires, Inc. (TTI) to counsel TTI’s employees concerning their investments. Jill Fisher is one of the employees and she approaches Litner to help her manage her personal finances. Fisher is 36, and earns $30,000 per year from her job at TTI. She rents an apartment, has about $5,000 in savings, and $3,000 in credit card debt. She is divorced with a 12-year old child and does not receive alimony or child support. A previous analysis performed by a financial expert from the company had predicted that Fisher’s defined benefit pension plan would be able to support her in her retirement at her current standard of living. TTI’s medical coverage is very good and will cover her in her retirement. Although Fisher has no other source of income, she recently inherited approximately $2 million in cash from a distant relative, and that is the reason she has approached Litner. After an initial consultation, Fisher asks Litner to be her investment advisor. As a first step, Litner attempts to assess Fisher’s personality type with the use of a questionnaire. The questionnaire indicates that she is conservative in that she will want to know with some certainty the lower limit of the value of her portfolio in the future. Also, she wants to be informed about every aspect of the investment process, e.g., get detailed information concerning every investment recommendation that Litner makes for her portfolio before approving it. Part of the questionnaire attempts to determine how open Fisher is to changes. The questionnaire’s results indicate that she is willing to adjust and sell positions readily, even at a loss, if new information indicates a change is needed. Litner intends to use the information from the questionnaire to compose an investment policy statement (IPS). He feels that he should compose the outline of the statement in a consultation with Fisher. When Litner asks Fisher to meet with him to compose an IPS, Fisher tells Litner that she does not see the need for such a statement. She says that she thinks that Litner’s credentials are excellent. Furthermore, since she has indicated that she intends to review in depth all of Litner‘s recommendations, having such a statement is unnecessary. Litner attempts to gather the information he needs through a series of informal conversations. During one conversation, he gleans from Fisher her returns expectations. During a later conversation, he questions her concerning her attitudes towards risk and other tastes and preferences. Fisher asks Litner to send her information on Litner’s first recommendation for her $2 million portfolio. She asks that he send to her such information one at a time for her to review so she can build her portfolio steadily one investment at a time. Fisher tells Litner at the outset that she wants to avoid frequent rebalancing and turnover because she has heard the costs and tax consequences of rebalancing and turnover can have a significant and negative impact on the returns of the portfolio.
Litner’s insistence on an investment policy statement (IPS) is: A) justified because it is beneficial for both Fisher and Litner. B) not justified, and it should be considered optional. C) justified because it is beneficial for Litner but not necessarily for Fisher. Correct answer is A) An IPS benefits both the client and the advisor. For example, it benefits the client because it sets guidelines for every recommendation by the advisor and it benefit’s the advisor because it protects the advisor in cases where investments do not perform exactly as expected. | 
发表于 2009-1-19 17:03
| 
