The two steps to establishing an investment policy are to state the:
A) minimum investment and maximum fees.
B) SEC guidelines for prudent man investing.
C) objectives and constraints.
D) asset allocation parameters and time horizons.

Question

Quizplus · Accepted Answer

The two fundamental steps to establishing an investment policy involve stating the objectives, which outline what the investment aims to achieve, and the constraints, which are the limitations or requirements (such as liquidity needs, time horizon, tax considerations, legal requirements, and unique circumstances) that must be considered in formulating the investment strategy.

The Two Steps to Establishing an Investment Policy Are to State