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CFA Level I Basics of Portfolio Planning and Construction question

Portfolio Management / Basics of Portfolio Planning and Construction

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Basics of Portfolio Planning and Construction sample question

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Portfolio Management

Basics of Portfolio Planning and Construction

An investment policy statement contains two risk statements. Statement 1: 'The portfolio should NOT lose more than 12% of its value over any 12-month period, assessed at a 95% confidence level.' Statement 2: 'Annualized tracking risk relative to the policy benchmark should NOT exceed 3%.' These statements are best classified, respectively, as:

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