1. The aspect least likely to be included in the investment policy statement is: a. Identifying an investor's objectives, constraints, and preferences. b. Organizing the management process itself.| c. Implementing strategies regarding the choice of assets to be used. d. Procedures for monitoring market conditions, relative values, and investor circumstances. 2. A clearly written investment policy statement is critical for: a. Mutual funds. b. Individuals. c. Pension funds. d. All investors. 3. The investment policy statement of an institution must be concerned with all of the following except: a. Its obligations to its clients. b. The level of the market. c. Legal regulations. d. Taxation. 4. Under the provisions of a typical corporate defined benefit pension plan, the employer is responsible for: a. Paying benefits to retired employees. b. Investing in conservative fixed-income assets. c. Counseling employees in the selection of asset classes. d. Maintaining an actuarially determined, fully funded pension plan. 5. Which of the following statements reflects the importance of the asset allocation decision to the investment process? The asset allocation decision: a. Helps the investor decide on realistic investment goals. b. Identifies the specific securities to include in a portfolio. c. Determines most of the portfolio's returns and volatility over time. d. Creates a standard by which to establish an appropriate investment time horizon