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CFA Level 2
Portfolio Management

Understanding Global Asset Allocation

Very Easy Asset Allocation Global Asset Allocation

Global asset allocation is a crucial component of portfolio management that involves diversifying investments across different geographical regions. Understanding the benefits and constraints of various asset classes in a global context is essential for optimizing a portfolio's risk-return profile.

Consider a portfolio manager evaluating the potential impact of asset allocation on investment performance. Which of the following statements about global asset allocation is correct?

Hint

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