- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 41. Measuring and Managing Market Risk
- Subject 3. Using Constraints in Market Risk Management
CFA Practice Question
A portfolio may remain under its VaR limit each day but cumulatively lose more than expected. This is known as "trending." Which constraint is the best candidate for managing trending?
B. A scenario limit
C. A stop-loss limit
A. A position limit
B. A scenario limit
C. A stop-loss limit
Correct Answer: C
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