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Basic Question 16 of 16
Investors' utility curves will be very ______ if they are very risk-averse, indicating they will not tolerate much additional risk to obtain additional returns.
B. flat
C. curvilinear
D. curved
E. convex
A. steep
B. flat
C. curvilinear
D. curved
E. convex
User Contributed Comments 3
| User | Comment |
|---|---|
| zeiad | their utility curves will be very steep |
| DonAnd | Steep utility curve = conservative investor Flat utility curve = less risk averse investor |
| kseeba17 | Think of it in terms of elasticity |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain risk aversion and its implications for portfolio selection
CFA® 2025 Level I Curriculum, Volume 2, Module 1.