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Basic Question 2 of 3
Which is the best constraint for overconcentration?
B. A position limit
C. A scenario limit
A. Risk budgeting
B. A position limit
C. A scenario limit
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.