The First Step of Portfolio Management According to Maginn and Tuttle

The first step of portfolio management according to Maginn and Tuttle is:

A) to assess economic and market conditions to determine the relative asset mix.
B) to determine objectives, constraints and preferences in order to lead to explicit investment policies.
C) to develop strategies and implement them through the choice of the optimal combinations of assets.
D) to adjust the portfolio to reflect significant changes that have occurred.