CFA L2 – Portfolio Management and Wealth Planning Quiz

What is the purpose of using dynamic asset allocation techniques?

Which of the following is a method used to estimate the risk-free rate for a multi-period investment horizon?

In the context of portfolio rebalancing, which method involves setting specific thresholds for asset class weights and rebalancing whenever these thresholds are breached?

When constructing a multi-asset class portfolio, which portfolio construction method typically involves optimizing the weights to minimize tracking error relative to a specified benchmark?

Which of the following factors is typically considered in determining a client's risk capacity?

In Black-Litterman model, the views of the investor are incorporated by adjusting which parameter?

Which of the following is a limitation of using a single-period model in financial planning?

In the context of estate planning, what is the purpose of a testamentary trust?

Which of the following is a limitation of mean-variance analysis in portfolio construction?

Which of the following is a characteristic of a liability-driven investment (LDI) strategy?