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Basic Question 1 of 3
A bank allows its North American business to use 60% of its market risk capital and 40% of its credit risk capital. This is an example of ______.
B. risk limiting
C. risk positioning
A. risk budgeting
B. risk limiting
C. risk positioning
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain constraints used in managing market risks, including risk budgeting, position limits, scenario limits, and stop-loss limits;
explain how risk measures may be used in capital allocation decisions.
CFA® 2025 Level II Curriculum, Volume 5, Module 41.