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.
我理解这两句：The credit market is global in nature和which can provide excess returns that outperform the domestic and global developed market indexes.是说全球的信用市场是均衡的，新兴市场能提供超额收益，就是新兴市场的信用评价是偏低了，投资新兴市场的信用市场会有超额收益，所以选B