Good morning I wonder why in this question the answer does not focus purely on active, structural and strategic risk but goes for a catch all approach. This was my first approach and then because of the mention of risk budgeting in part (iii) I thought this meant I should focus on the 3 that make up the overall risk. Thank you, Rachael
Hi Rachael - you are right to spot the 'clue' in part (iii) that will give you some idea of the risks that can be covered in part (ii). However, bear in mind the command verb 'Outline', which requires each idea to be covered only briefly. And we should ideally always be aiming to go as wide as possible in terms of breadth of idea coverage. For 3 marks, we should therefore be aiming to cover 6 different aspects of investment risk (thinking in half marks).
