A Portfolio Manager usually chooses his/her own investment policy and monitors adherence to the policy him/herself.Review LaterTrueFalse
Question
A Portfolio Manager usually chooses his/her own investment policy and monitors adherence to the policy him/herself.
- Review Later
- True
- False
Solution
The statement is True.
In the realm of portfolio management, it is indeed a common practice for a portfolio manager to determine and establish the investment policies that guide their portfolio choices. This autonomy allows managers to tailor their strategies based on their expertise, market conditions, and specific investment goals. Moreover, the responsibility of monitoring adherence to these policies typically falls on the manager themselves. This direct oversight not only promotes accountability but also enables them to make timely adjustments based on performance metrics and changing market dynamics.
While there may be instances where external guidelines or frameworks apply (such as regulations for institutional investors), the fundamental process remains: portfolio managers are often empowered to create and enforce their own investment policies. This flexibility is crucial for adapting to the complexities and uncertainties inherent in financial markets.
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