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:

Predicting Cash Flows

The process of estimating the amount of money that will move in and out of a business in a future period.

Future Projects

Planned endeavors or activities that a business intends to undertake to achieve specific objectives or strategic goals.

Earnings Per Share

Earnings Per Share (EPS) calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, also known as the bottom line or net profit.