Which of the following statements about portfolio management is TRUE?
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A. B. C. D.A
This statement is true.
The steps of the investment process are listed in the incorrect order. The order should be as follows: specify goals and constraints (write a policy statement), analyze current financial and economic conditions (develop investment strategy), allocate assets across asset classes (implement the plan), monitor and rebalance the portfolio as needed (monitor and update). In the spending and gifting phases, investor portfolios generally less in equities as investors seek lower risk securities. Performance should be judged using an objective, benchmark standard "" not the raw portfolio return.