1. Define an Investment policy statement and discuss the reasons for an IPS.

2. Discuss major components of an IPS.

3. Discuss FIVE major constraints in the IPS.

4. An investor purchased 200 shares of a stock for $34.50 per share at the beginning of the quarter. If the investor sold all of the shares for $40.50 per share after receiving a dividend of $2.00 per share at the end of the quarter. Calculate the holding period return.

5. A private equity fund generated a return of 20% in 2017,15% in 2018, 30% in 2019. Calculate the:

Arithmetic mean

Geometric mean