AIMR-PPS Risk Presentation Guidelines

AIMR-PPS Risk Presentation Guidelines

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Question

The AIMR-PPS recommend that both ________ and ________ risks be presented in conjunction with composite returns.

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Explanations

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A. B. C. D.

B

Total risk relates to the variability of actual (absolute) returns not relative to the market. Market (systematic) risk relates to the volatility of returns relative to the market or some other benchmark.