CFA Practice Question

There are 255 practice questions for this topic.

CFA Practice Question

Here are three portfolios constructed by your investment firm:

If you want to hedge an existing positive exposure to inflation risk, you would ______.
A. long portfolio B
B. short portfolio A
C. short portfolio C
Explanation: Portfolio C is a factor portfolio for inflation risk. It is thus the efficient for hedging existing exposure to inflation risk.

User Contributed Comments 0

You need to log in first to add your comment.