Answer: Statement 1 only

**Explanation:** **Statement 1 is correct:** According to the CFA Institute Standards of Professional Conduct, an Investment Policy Statement (IPS) should indeed address the client's return requirements. The IPS is a fundamental document that outlines the client's objectives, constraints, and risk tolerance, and return requirements are a key component of investment objectives. **Statement 2 is incorrect:** While personal data such as age and occupation are important factors in understanding a client's financial situation and risk tolerance, they are not absolutely required to provide investment advice. The Standards require members to understand their clients' financial circumstances, investment experience, and risk tolerance, but there may be circumstances where some personal data is not available or relevant. The key requirement is to make reasonable efforts to obtain relevant information. **Statement 3 is incorrect:** In an advisory relationship, members and candidates have the primary responsibility for determining the suitability of investments for their clients. The Standards require that when members are in an advisory relationship, they must make a reasonable inquiry into a client's financial situation, investment experience, and investment objectives to determine suitable investments. The responsibility for suitability lies with the investment professional, not the client. Therefore, only Statement 1 is consistent with the Standards.

Author: LeetQuiz .