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Basic Question 4 of 6
Points above the capital allocation line are ______ by investors.
B. achievable but not desirable
C. both desirable and achievable
A. desirable but not achievable
B. achievable but not desirable
C. both desirable and achievable
User Contributed Comments 3
| User | Comment |
|---|---|
| michlam14 | i got this wrong. Because it can be achieved through leverage. However, it is not achieveable given current resources (without borrowing) |
| johntan1979 | michlam14 I think you got the concept wrong. Look at the graph again in the notes. Points to the right of P is leverage. Points above the CAL is NEVER achievable. |
| tricorp | I agree with Johntan |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line
CFA® 2025 Level I Curriculum, Volume 2, Module 1.