____ must be stated in terms of expected returns and risk. An investor's tolerance for risk must be established before returns objectives can be stated.
A) Investment requirements
B) Investment constraints
C) Investment rewards
D) Investment objectives
E) Investment policy

Question

Quizplus · Accepted Answer

Investment objectives must be stated in terms of expected returns and risk, taking into account the investor's tolerance for risk. Investment requirements, investment constraints, investment rewards, and investment policy are all important components of an investment plan, but they do not directly relate to establishing return objectives and risk tolerance.

____ Must Be Stated in Terms of Expected Returns and Risk