Does anyone recall offhand where the L3 curriculum discusses the definition of an asset class?
All asset in the class should share similar return and risk profile; asset in the asset class can’t be reasonably belong to multiple class. Offhand, that is all I remember. I believe this is discussed in Equity Mgm section of L3.
Probably reading 25(g) Evaluate whether an asset class or set of asset classes has been appropriately specified;
Assets classes should be mutually exclusive and relatively uncorrelated with one another. Assets within an asset class should be homogenous. SS7