The first step to establishing an investment policy is to state the
A)minimum investment and maximum fees.
B)SEC guidelines for prudent man investing.
C)objectives and constraints and preferences.
D)asset allocation parameters and time horizons.

Question

Quizplus · Accepted Answer

The first step to establishing an investment policy is to clearly state the objectives, constraints, and preferences of the investor. This includes identifying what the investment is intended to achieve, the timeline for achieving it, and any restrictions or limitations on the investment strategy. Once these are determined, then decisions can be made regarding asset allocation parameters and time horizons, as well as minimum investment amounts and maximum fees. The SEC guidelines may also be considered in developing an investment policy, but they are not typically the first step.

The First Step to Establishing an Investment Policy Is to State