CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Risk budgeting or risk allocation includes ______

I. decomposing the aggregate risk of a portfolio (or even of the entire investment process) into its constituents (risk factors or drivers) on a quantitative basis.
II. setting risk limits (risk budgets) to each asset class (or even single asset), factor, and/or investment manager (ex ante).
III. allocating assets in compliance with risk budgets.
IV. monitoring the use or abuse of risk budgets on an ongoing basis.
Correct Answer: I, II, III and IV

User Contributed Comments 0

You need to log in first to add your comment.