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Basic Question 2 of 3

Which is the best constraint for overconcentration?

A. Risk budgeting
B. A position limit
C. A scenario limit

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Lina

Lina

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.