Which of the following statements is true regarding effective investment planning?
A)When establishing an investment program, you should begin by monitoring your investments.
B)When you are choosing an investment, you should examine only the interest rate risk factor associated with each investment.
C)When establishing an investment program, you should examine the potential return offered by different investment alternatives.
D)Leave the financial planning to the professionals.
E)There is no need to monitor your investments after you have made your investment decision.

Question

Quizplus · Accepted Answer

When establishing an effective investment program, it is important to examine the potential return offered by different investment alternatives. This will help you make informed decisions about which investments to choose. Monitoring your investments is also important to ensure that they continue to align with your goals and objectives. Simply examining the interest rate risk factor associated with each investment is not enough to make effective investment decisions. Leaving financial planning to the professionals may be an option for some individuals, but ultimately it is important to have a basic understanding of your investments and be involved in the decision-making process. Finally, monitoring your investments is an ongoing process to ensure that they continue to align with your goals and objectives over time.

Which of the Following Statements Is True Regarding Effective Investment