In an Investment Policy Statement, the Objectives of an Investor

question 55

Multiple Choice

In an investment policy statement, the objectives of an investor are expressed in terms of

• A) risk and return.
• B) risk.
• C) return.
• D) time horizon.
• E) liquidity needs.

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Definitions:

Commingled

Mixed together without any clear separation, especially referring to funds or assets.

Retained Earnings

Profits that a corporation keeps.

Reinvestment

The process of using the proceeds from an investment to purchase additional assets or securities in order to potentially increase wealth.

Self-Dealing

Any instance in which directors or officers make decisions that violate their corporate duty of loyalty.