NO.PZ202209060200004405
问题如下：
An implication of Choate’s investment strategy is that relative to the benchmark, the portfolio most likely would have:选项：
A.lower credit quality and a higher concentration in commodities. B.lower credit quality but higher recovery rates. C.low diversification benefit because of high credit cycle correlation.解释：
SolutionA is correct. Emerging market credit is characterized by a concentration in commodities and banking and government ownership of some entities. Additionally, uncertainty in creditor rights can lead to lower recovery rates and lower credit quality. Even though Choate has a diversified portfolio, the emerging market credits are outside their performance benchmark, which would lead to lower credit quality and a higher concentration in commodities.
B is incorrect because emerging market debts face uncertainty in contractual rights and lower recovery rates.
C is incorrect because there are some differences across regions in the credit cycle providing diversification.
请老师讲下C怎么错了，谢谢！
