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What is the purpose of an Investment Policy Statement?

  1. A Documenting the client's objectives, constraints, risk tolerance and time horizon
  2. B Guaranteeing returns
  3. C Setting management fees
  4. D Selecting individual securities
Answer

Documenting the client's objectives, constraints, risk tolerance and time horizon

Constraints typically cover liquidity, time horizon, tax, legal and regulatory factors, and unique circumstances.

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