- CFA Exams
- CFA Exam: Level I 2021
- Study Session 19. Portfolio Management (2)
- Reading 54. Basics of Portfolio Planning and Construction
- Subject 4. Portfolio Construction
CFA Practice Question
Studies show that 85 to 95% of portfolio performance can be explained by ______.
II. the asset classes considered for investment
III. the proportions invested within each asset class
I. security selection within asset classes
II. the asset classes considered for investment
III. the proportions invested within each asset class
Correct Answer: II and III
Policy decisions regarding asset allocation explain most of a portfolio's performance.
User Contributed Comments 1
| User | Comment |
|---|---|
| soarer1 | Asset class and proportion are key |