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DigiTransact Mastermind
CFA Institute•CFA Exam Practice

Portfolio Management & Ethics

University 5 questions
AI-drafted from platform data — specialist review scheduledBy DigiTransact Mastermind editorial team
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What portfolio management & ethics means

Diversification, CAPM and the CFA code of ethics.

Before you start

Not confident yet? Work through Quantitative Methods & Economics first.

Worked example

One question from this skill's own question bank, shown with its full working.

Question

Diversification primarily reduces:

  • systematic risk
  • unsystematic risk
  • inflation risk
  • interest rate risk
Answer: unsystematic risk

Working: Company-specific risk can be diversified away; market risk cannot.

Curriculum and exam alignment

Tertiary foundation coursework

Curriculum notes are a general guide to where this work normally sits. Always check the syllabus your school or examination body is currently using.

Related skills

Other CFA Exam Practice skills in CFA Institute, at the same point in the course.

Other CFA Institute topics

CFA Level I Extended Practice

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Exams that assess portfolio management & ethics

University work on this skill feeds directly into these exam papers. Each page lists the CFA Institute topics that appear on it.

CFACFA practice questionsThis subject is one of the practice areas on the CFA page.ACCAACCA practice questionsListed as a related subject on the ACCA practice page.CIMACIMA practice questionsListed as a related subject on the CIMA practice page.

How this page was produced

This text was drafted with AI assistance from the questions and topics already stored on the platform. A subject-specialist review is scheduled but has not yet been recorded, so we do not claim it here.

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All CFA Institute skills

Practise portfolio management & ethics

5 questions with a worked answer after every attempt, and a SmartScore that tracks how close you are to mastery.

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