THERE IS A LACK OF INDEPENDENCE IN INVESTMENT DECISIONS. FOR EXAMPLE,...

1: - CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R51 ANALYSIS OF ACTIVE PORTFOLIO MANAGEMENT Q BANK
CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R51 ANALYSIS OF ACTIVE PORTFOLIO MANAGEMENT Q BANK

1: There is a lack of independence in investment decisions. For example, almost all bonds have

some form of credit risk and duration risk, therefore returns are highly correlated in subtle ways.