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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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In the context of portfolio management, risk budgeting is a process of allocating the total allowable risk across various asset classes to achieve the optimal balance between risk and return. Given the need to allocate risk budgets effectively, determine the total amount of risk budgets that should be assigned to the following four asset classes:

  1. Equities
  2. Fixed Income
  3. Commodities
  4. Real Estate

Note: Ensure the sum of the risk budgets assigned aligns with the overall risk tolerance set for the portfolio.

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