1. Which of the following is true of how performance measurement and reporting should be handled in an organization's investment policy?

1. Companies that use foreign investment instruments only need to report on the impact of currency movements after the gains or losses have been realized through a sale
2. Performance measurement benchmarks should be based on those investment vehicles permitted by the investment policy
3. Breaches of investment limits should be primarily reported in weekly or monthly performance reports
4. Investment policies should provide some degree of flexibility in methods used to calculate returns on portfolios