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NEW QUESTION: 3
Sara Robinson and Marvin Gardner are considering an opportunity to start their own money management firm. Their conversation leads them to a discussion on establishing a portfolio management process and investment policy statements. Robinson makes the following statements:
Statement 1;
Our only real objective as portfolio managers is to maximize the returns to our clients.
Statement 2:
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B. Barriers to short-term strategy shifts driven by panic or overconfidence stemming from portfolio performance or changes in market environments.
C. Transportability so as to minimize any disruptions if new managers assume responsibility for the portfolio.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Investment policy statements should be transportable, foster discipline, and discourage short-term strategy shifts. (Study Session 18, LOS 68.d)
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