QUESTIONS 1, INCLUDING GUIDELINE ANSWER, 1996 CFA LEVEL III EXAMINA...

5. Questions 1, including Guideline Answer, 1996 CFA Level III Examination (AIMR) Purpose: To test the candidate’s ability to prepare an investment policy statement that accurately reflects an individual investor’s objectives, constraints, and preferences. LOS: The candidate should be able to: “Individual Investors” (Study Session 9) c) analyze the objectives and constraints of an individual investor and use this information to formulate an appropriate investment policy by taking into consideration the investor’s psychological characteristics, position in the life cycle, long-term goals, liquidity constraints, and any special circumstances such as taxes, gifts, and estate planning. Cases in Portfolio Management (Study Session 9) c) create an investment policy statement for the individual investor in each case, using the concepts addressed in the readings in this Study Session.