CFA Practice Question

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CFA Practice Question

True or false?

For an investor with a long-time horizon, a geopolitical event, like an unpredictable event, may present a purchasing opportunity.

Correct Answer: True

On the other hand, reducing exposure to geopolitical risk may be acceptable for an investor with limited risk tolerance. On a portfolio level, geopolitical risk can influence the appropriateness of an investment security or strategy for an investor's goals, risk tolerance, and time horizon.

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