Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 1 of 3
A bank allows its North American business to use 60% of its market risk capital and 40% of its credit risk capital. This is an example of ______.
B. risk limiting
C. risk positioning
A. risk budgeting
B. risk limiting
C. risk positioning
User Contributed Comments 0
You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain constraints used in managing market risks, including risk budgeting, position limits, scenario limits, and stop-loss limits;
explain how risk measures may be used in capital allocation decisions.
CFA® 2025 Level II Curriculum, Volume 5, Module 41.