SECTION 6.2.2. LO.F. COPYRIGHT © IFT. ALL RIGHTS RESERVED. PAGE 3 COPY...

10. Once the IPS is formulated, is there a need for Jonathan to update it? A. Yes, because client circumstances may change over time. B. No, because the IPS is for long term. C. No, because the IPS cannot be changed once finalized. The following information relates to question 11. Katia Vlahd, CFA, a portfolio manager at Victor Investment Advisory, meets with a high-net-worth client to discuss his investment needs. After the meeting, Vlahd formulates the client’s investment policy statement which contains the following objective: “The portfolio’s total pre-tax real return should on average be in excess of 9% annually in order for him to have sufficient income to meet both his current and expected future spending needs.”