B IS CORRECT. AN INVESTOR MUST ANALYZE THE RISK RETURN TRADE-OFF OF...

1. - CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R47 THE PORFOLIO MANAGEMENT PROCESS AND THE IPS Q BANK
CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R47 THE PORFOLIO MANAGEMENT PROCESS AND THE IPS Q BANK
1. B is correct. An investor must analyze the risk return trade-off of the portfolio as a whole as unsystematic risk pertaining to individual investments can be diversified away by combining investments. Section 3. LO.a.