The scope and purpose section of an Investment Policy Statement for individual investors typically consists of defining the
A) return, distribution, and risk requirements.
B) process for review of the IPS.
C) appropriate metrics for risk measurement.
D) relevant constraints.
E) context, investor, and structure.

Question

Quizplus · Accepted Answer

The scope and purpose section of an Investment Policy Statement (IPS) for individual investors is primarily focused on defining the context in which the investment decisions are made, who the investor is (their goals, risk tolerance, time horizon, etc.), and the structure of the investment process. This section sets the foundation for the investment strategy and guidelines.

The Scope and Purpose Section of an Investment Policy Statement