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CFA Level 2
Portfolio Management

Stress Testing Methodologies for Equity Portfolio

Medium Risk Management Applications Stress Testing

ABC Asset Management is conducting a stress test for its diversified equity portfolio, which consists of stocks in various sectors, including technology, healthcare, and consumer goods. The team is particularly interested in understanding the potential impacts of a significant economic downturn on the portfolio's overall value.

Which of the following methodologies would be most appropriate for conducting a stress test on the equity portfolio in this scenario?

Hint

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