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Basic Question 0 of 13
A risk-free asset has to be ______.
II. issued by the government
III. free of inflation
IV. a Treasury bond
I. default-free
II. issued by the government
III. free of inflation
IV. a Treasury bond
User Contributed Comments 5
| User | Comment |
|---|---|
| johntan1979 | I guess II is not correct because government could be ANY government e.g. Greece or Spain. |
| jonan203 | lol, default free, i pray to god that assumption stands over the next few decades. |
| Groyne | Spain has not defaulted |
| Logaritmus | But they will default without quantiative easing. Before EU their bonds have yield >10%. |
| khalifa92 | issuance aint related to risk-free technically 1-3 contributes |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe and interpret the fundamental law of active portfolio management including its component terms - transfer coefficient, information coefficient, breadth, and active risk (aggressiveness);
CFA® 2025 Level II Curriculum, Volume 6, Module 38.