CFA Practice Question

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CFA Practice Question

Which objective is a relative risk objective?

A. With 90% probability, the portfolio should not lose more than 5% of its capital in any 12-month period.
B. With 90% probability, the portfolio return will be within 5% of NASDAQ Composite.
C. The portfolio will outperform the DJIA by 2% per year.
Correct Answer: B

A is an absolute risk objective and C is a return objective.

User Contributed Comments 1

User Comment
Antoinepo Good question
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