I think I just got Schwesered: Sector risk is defined as the risk of: A) individual countries in a passive benchmark portfolio. B) all the sectors in the portfolio. C) assigning the wrong weight to a sector in the portfolio. Your answer: C was incorrect. The correct answer was A) individual countries in a passive benchmark portfolio. Sector risk is the risk of individual countries or sectors in a passive benchmark portfolio. Really?
methinks the appropriate term is “schwesed” lol
yes I read that yesterday. For international securities - sector risk is what they stated
So individual is the key word then, individual countries and individual sectors
i think i remember reading this… they claim sector can mean an actual sector as we think of it, or the euro sector, meaning euro countries… their wording is garbage
^ that’s correct. I remember reading the same. Then there’s the concept of global (countries & sectors) vs. international investing (countries only).
Global diversification better than Inlt
OMG, where is it in CFAI’s text ?