Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 0 of 7
Shortfall risk is defined as ______.
B. the probability that the mean return on a portfolio will fall below some minimum acceptable level over some time period
C. the probability that a portfolio value will always be below some minimum acceptable level over some time period
A. the probability that a portfolio value will fall below some minimum acceptable level over some time period
B. the probability that the mean return on a portfolio will fall below some minimum acceptable level over some time period
C. the probability that a portfolio value will always be below some minimum acceptable level over some time period
User Contributed Comments 2
| User | Comment |
|---|---|
| fahad | It is the opposite of Z formula in the numerator and also replace mean with minum acceptable level of return denoted as RL. |
| bobert | It isn't the opposite of the z-formula. z-value = (X-mean) / std dev. SFRatio = (Rp-RL) / std dev. Both formulas look to get an answer that is relative to standard deviation units. Therefore on a normal distribution, you use the SFRatio as a z-value to determine the F(X) |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
contrast accounting profit, taxable income, taxes payable, and income tax expense and temporary versus permanent differences between accounting profit and taxable income
CFA® 2025 Level I Curriculum, Volume 3, Module 9.