1. Which of the following is least important as a reason for written investment policy statements (IPS)?
A. The IPS may be required by regulation.
B. Having a written IPS is part of best practice for a portfolio manager.
C. Having a written IPS ensures the client's risk and return objectives can be achieved.
2. Which of the following best describes the underlying national rationale for a written investment policy statement (IPS)?
A. A written IPS communicates a plan for trying to achieve investment success.
B. A written IPS provides investment managers with a ready defense against client lawsuits.
C. A writers IPS allows investment managers to instruct clients about the proper use and purpose of investments.
3. A written investment policy statement (IPS) is most likely to succeed if:
A. Created by a software program to assure consistent quality.
B. It is a collaborative effort of the client and the portfolio manager.
C. It reflects the investment philosophy of the portfolio manager.