Question: Prepare a one to two-page policy statement for your stock market account, including a return objective, risk tolerance and time horizon. This exercise can be
Prepare a one to two-page policy statement for your stock market account, including a return objective, risk tolerance and time horizon. This exercise can be for someone you know or some a fictional individual/focus group. Your policy statement may be long-term, such as considering lifecycle issues, or a shorter investment horizon such as one year out.Use this information to develop a broad strategy that sets your asset allocation. Your report should include the following headings:
* Policy Statement
- Return objective
- Risk tolerance
* Constraints
* Strategy, asset allocation, and your process for security selection and benchmark.
Vanguard has an interesting questionnaire that might help you think about his assignment.Go to: https://personal.vanguard.com/us/FundsInvQuestionnaire to fill it out.
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