The first step a pension fund should take before beginning to invest is to __________.
A)establish investment objectives
B)develop a list of investment managers with superior records to interview
C)establish asset allocation guidelines
D)decide between active and passive management
E)none of the above

Question

Quizplus · Accepted Answer

Before beginning to invest, a pension fund should establish its investment objectives. These objectives will guide the investment strategy, including asset allocation and manager selection. It is important to have a clear understanding of the goals and constraints of the pension fund before making investment decisions.

The First Step a Pension Fund Should Take Before Beginning