One of the reasons for constructing a policy statement is it
A) creates a standard by which to judge the performance of the investor.
B) helps the investor decide on realistic investment goals.
C) is open-ended in order to provide guidance for specific investments and time frames.
D) guarantees success.
E) helps the portfolio manager to become familiar with financial markets and investing risks.

Question

Quizplus · Accepted Answer

Constructing a policy statement helps the investor decide on realistic investment goals by providing a framework for making informed investment decisions. It outlines the investor's risk tolerance, investment objectives, time horizon, and other factors that impact investment decisions.

One of the Reasons for Constructing a Policy Statement Is