Examples for the following

CFA Level III
#1

Please provide examples for following statements:

• The asset classes as a group should make up a preponderance of world investable wealth

• The asset class should have the capacity to absorb a significant fraction of the investor’s portfolio
without seriously affecting the portfolio’s liquidity

Thanks

#2

The first bullet point means that you shouldn’t exclude significant portions of the investable universe; i.e., don’t exclude art, baseball cards, 427 Cobras, and so on.

The second bullet point means that the investable universe should be so much larger than the investor’s portfolio that the investor can easily invest in anything that he/she wants to; i.e., the investor cannot corner the market on . . . whatever.

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#3

Thanks Bill

#4

My pleasure.

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