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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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A group of newly hired analysts at a large pension fund are discussing how changes in different macroeconomic risk factors are likely to impact the fixed-income and equity positions in the fund's portfolios. The analysts consider the effects of some of the most commonly modeled macroeconomic risk factors, including economic growth, inflation, and volatility, on different classes of stocks and bonds. Which of the following observations is correct for the analysts to make?

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