Select the most accurate description of the purpose and structure of the Investment Policy Statement ‘IPS’.

a. The overall purpose of an Investment Policy Statement or ‘IPS’ is to establish the longterm investment plan for a given investor and portfolio. The IPS includes Risk and Return Objectives which specify the investment strategy such as which Asset Classes to invest in and the Constraints which help define guidelines and limits on how the portfolio is to be invested.

b. The overall purpose of an Investment Policy Statement or ‘IPS’ is to establish the longterm investment plan for a given investor and portfolio. The IPS includes Risk and Return Objectives which define the investment goal for the portfolio and guidelines for how much risk can be taken and the Constraints which help define guidelines and limits on how the portfolio is to be invested. The investment strategy may also be included in the IPS but not in the Objectives or Constraints sections.

c. The overall purpose of an Investment Policy Statement or ‘IPS’ is to establish the investment plan for a given investor and portfolio given current Capital Market conditions. The IPS includes Risk and Return Objectives which define the investment goal for the portfolio and guidelines for how much risk can be taken and the Constraints which help define guidelines and limits on how the portfolio is to be invested. The investment strategy may also be included in the IPS but not in the Objectives or Constraints sections.