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CMFASPrepStudyingRES5
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Financial advisory
RES5Financial Advisory Services✓Which of the following funds is likely to carry the HIGHEST concentration risk?
Concentration risk arises from heavy exposure to a single security, sector, country or issuer; a fund tracking one narrow industry in one country is highly concentrated, so a problem there causes an outsized loss.
Assuming a narrow single-country, single-sector fund is as diversified as broad multi-asset funds.
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