CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

Which statement is false?
A. Stress tests and scenario analyses can be used to eliminate a portfolio's risk exposures.
B. A portfolio that has no sensitivity to any stress event is unlikely to make more than the risk-free rate.
C. Hypothetical scenarios are very useful in being able to stress correlation parameters.
Explanation: They can be used to understand a portfolio's risk exposures, not to eliminate them.

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