QUESTIONS 19 THROUGH 24 RELATE TO RISK MANAGEMENT SELENA ROBERTS CASE...

24. - VOLUME II BEHAVIORAL FINANCE INDIVIDUAL INVESTORS AND INSTITUTIONAL INVESTORSCFA LEVEL 3CFA FINQUIZ LEVEL3MOCK2018VERSION2JUNEPMQUESTIONS
VOLUME II BEHAVIORAL FINANCE INDIVIDUAL INVESTORS AND INSTITUTIONAL INVESTORSCFA LEVEL 3CFA FINQUIZ LEVEL3MOCK2018VERSION2JUNEPMQUESTIONS
24. Which of the following statements least accurately explains why the methodologies selected by Roberts are unsuitable for Rodriguez? A. Rodriguez trades options rendering VAR-based position limits unsuitable. B. Notional position limits are not a suitable standalone capital allocation methodology. C. VAR-based position limits will not effectively capture the effects of offsetting risks related to synthetic products.