“ASSET ALLOCATION” THE CANDIDATE SHOULD BE ABLE TO

25. - L3 MOCK SAMPLE EXAM CFA LEVEL III GUIDELINE ANSWERS 2008
L3 MOCK SAMPLE EXAM CFA LEVEL III GUIDELINE ANSWERS 2008
25. “Asset Allocation” The candidate should be able to: d) contrast the asset-only and asset/liability management (ALM) approaches to asset allocation; e) explain the advantage of dynamic over static asset allocation and evaluate the trade-offs of complexity and cost; f) evaluate return and risk objectives in relation to strategic asset allocation; m) formulate and justify a strategic asset allocation, given an investment policy statement and capital market expectations; LOS: 2008-III-07-26-a, b, c