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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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C. Barriers to short-term strategy shifts driven by panic or overconfidence stemming from portfolio performance or changes in market environments.
Answer: B
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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