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Chartered Financial Analyst Level 2

Chartered Financial Analyst Level 2

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80 A fund manager backtests a strategy of adding non-domestic equities to a domestic portfolio, with a goal of enhancing the portfolio's Sharpe ratio. Transaction costs for non-domestic equities are similar to domestic equities, and no foreign currency hedging is planned. If historical data is available as of 1980, which of the following decisions in the backtest design is not appropriate?

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