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.

---

Definitions:

Demand Shifts

Refers to the change in the quantity of a product that consumers are willing and able to buy at different prices, caused by factors other than the price of the product itself.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Lettuce Crop

The cultivation and production of lettuce, a leafy green vegetable commonly used in salads and other dishes.