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CFA Level 3
Portfolio Management and Wealth Planning

Managing Market Risk in Technology Stocks

Hard Risk Management Managing Market Risk

Julia is a senior portfolio manager at a firm that specializes in wealth management. Recently, she has been tasked with assessing the risk profile of a high-net-worth client's portfolio, which is heavily concentrated in technology stocks. With increasing volatility in the tech sector, Julia is concerned about potential market risk affecting the portfolio’s value. To mitigate market risk while maintaining exposure to the technology sector, she considers various strategies.

Which of the following strategies should Julia implement to best manage the market risk associated with this concentrated investment in technology stocks?

Hint

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