CPBM — Certified Private Banking Manager Portfolios Practice Questions

A client has assets spread across several portfolios. What is essential for effective management?

• AA. Limiting diversification
• BB. Ignoring market changes
• CC. Minimizing client contact
• DD. Regular performance review

What is the primary benefit of diversification in investment portfolios?

• AA. Lower transaction costs
• BB. Higher returns
• CC. Reduced risk
• DD. Increased volatility

How often should client portfolios be reviewed?

• AA. At client request
• BB. Regularly based on changes in circumstances
• CC. Annually
• DD. Monthly