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CFA Level 3
Portfolio Management and Wealth Planning

Effective Market Risk Management Strategy

Easy Risk Management Managing Market Risk

During a client review meeting, a portfolio manager discusses various strategies to mitigate market risk in the client's equity portfolio. The client is particularly worried about the effects of potential economic downturns on his investments. The portfolio manager suggests several strategies to manage this risk.

What is the most effective strategy for the client to manage market risk in his equity portfolio?

Hint

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% Correct60%