The first step in the investment process is the development of a(n)
A) Objective statement.
B) Policy statement.
C) Financial statement.
D) Statement of cash needs.
E) Statement of cash flows.

Question

Quizplus · Accepted Answer

The development of a policy statement is the first and most crucial step in the investment process. It establishes the guidelines and objectives for the investment portfolio, including risk tolerance, return expectations, and asset allocation strategies. The other options may be important in the investment process, but they come after the policy statement is established.

The First Step in the Investment Process Is the Development