CFA Practice Question

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CFA Practice Question

Which of the following inputs to portfolio risk is under the control of the portfolio manager?

A. Correlations among asset rates of return
B. Expected returns for individual assets
C. Standard deviations for individual assets
D. Weights, or proportions, of each asset in the portfolio
Correct Answer: D

While the portfolio manager must estimate correlations, expected returns, and standard deviations, only asset weights can be modified to meet investor needs.

User Contributed Comments 1

User Comment
soarer1 Portfolio Mgr = Controls asset weights
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