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CFA Level 3
Portfolio Management and Wealth Planning

Understanding Capital Market Expectations

Very Easy Economic Analysis Capital Market Expectations

As a financial analyst working with a wealth management firm, you are tasked with formulating capital market expectations for your clients' portfolios. Your firm has gathered data regarding historical market returns, inflation rates, and interest rates to assess future market conditions.

Which of the following best describes the primary purpose of capital market expectations in portfolio management?

Hint

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