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CFA Level 2
Portfolio Management

Managing Market Risk Through Hedging

Easy Risk Management Applications Managing Market Risk

An investor is managing a portfolio that includes equities, bonds, and real estate investments. The investor is concerned about the potential negative impact of market downturns on the portfolio's overall performance. In order to mitigate this risk, the investor is considering implementing various strategies. Which of the following strategies is most directly aimed at reducing market risk for the investor’s portfolio?

Hint

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