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CFA Level 3
Portfolio Management and Wealth Planning

Minimizing Market Impact with Execution Strategies

Easy Trading & Rebalancing Execution Strategies

Lisa is a portfolio manager who is executing a significant trade to acquire a large position in a technology ETF. She is concerned about the potential market impact of her execution strategy given the size of the order compared to the average daily volume of the ETF.

To minimize this impact and achieve a better average price, she is considering different execution strategies. Which of the following execution strategies would typically allow her to minimize the market impact and volatility associated with her large trade?

Hint

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% Correct93%