The Desirable Components of an Investment Policy Statement for Individual

question 70

Multiple Choice

The desirable components of an Investment Policy Statement for individual investors can be divided into

• A) three main elements consisting of scope and purpose, governance, and risk management.
• B) three main elements consisting of scope and purpose, governance, and investment, return-and-risk objectives.
• C) four main elements consisting of scope and purpose, governance, risk management, and feedback.
• D) four main elements consisting of scope and purpose, governance, risk management, and investment, return-and-risk objectives.
• E) five main elements consisting of scope and purpose, governance, risk management, investment, return-and-risk objectives, and evaluation.

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Definitions:

Representative Sample

A segment of the population that precisely mirrors the characteristics of the whole population.

Population

The entire group of individuals or instances about whom the research is focused.

Sampling Error

The difference between a statistic derived from a sample and the corresponding statistic of the entire population, due to chance variation in selecting the sample.

Population

The entire group of individuals or items that a researcher or statistician is interested in studying.