The Investment Policy Statement is a critical part of any investment policy because it
A) focuses on the overall economic environment facing the investor.
B) identifies the specific brokerage firm the investor will use.
C) enforces logical, disciplined investment decision making.
D) outlines the tax-exempt securities to purchase.

Question

Quizplus · Accepted Answer

The Investment Policy Statement outlines the investor's goals, risk tolerance, asset allocation strategy, and the process for monitoring and making investment decisions. It enforces logical and disciplined decision-making, which can ultimately lead to better investment outcomes. A, B, and D are not the primary focus of the Investment Policy Statement.

The Investment Policy Statement Is a Critical Part of Any