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CFA Level 3
Portfolio Management and Wealth Planning

Purpose of Portfolio Monitoring

Very Easy Trading & Rebalancing Portfolio Monitoring

Maria is a portfolio manager who periodically reviews and monitors her clients' investment portfolios. During her latest review, she needs to assess the performance of various asset classes to determine whether any rebalancing is necessary due to significant market movements.

As she analyzes the data, Maria recalls that the key objective of portfolio monitoring is to ensure that the investment strategy remains aligned with her clients' identified risk tolerances and investment objectives.

Which of the following statements best describes the primary purpose of monitoring a portfolio?

Hint

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% Correct71%