单选题

The investment policy statement is important to investors because（）。

A、 it assures them that they will get the return they desire.
B、 it helps them understand the risk-return tradeoff of their investment plan.
C、 it helps investors understand financial markets.

【正确答案】 B

【答案解析】

The policy statement does not guarantee anything. It merely sets out the objectives and constraints. It also does not educate the investor about financial markets. This step is necessary before constructing a policy statement.