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 3 of 6
In general, investments made by ______ are considered to be the most conservative.
B. insurance companies
C. mutual funds
A. banks
B. insurance companies
C. mutual funds
User Contributed Comments 11
| User | Comment |
|---|---|
| asifrahman | what about an open end mutual fund? |
| viruss | In theory :) |
| johntan1979 | "In general..." |
| jonan203 | lol..."most conservative" like off balance sheet derivatives? |
| Bududeen | most conservative implies low risk investment of funds and high liquidity requirements...mutual funds can invest in equity(less conservative) and highly risky |
| ldfrench | "HAHAHAHA" - The years 2007-2008 to the answer of this question. |
| enetis | I imagine they are referring to your generic "S&L"s (saving & loan banks) and not the trading desks of the big IB's |
| abeeman924 | jonan203 with the win |
| degosan9 | The funny thing is based on the mezzanine system of CDOs, they were given AAA ratings by the agencies, so in theory they were "safe". Like as safe as it gets other than US treasuries. We just found out later that once they unwound, the risk wasn't really diversified away |
| khalifa92 | banks have most liquidity needs which in turn forces them to be conservative. |
| cosmos1994 | LOOOOOOOLLLLLL |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
describe types of investors and distinctive characteristics and needs of each
describe defined contribution and defined benefit pension plans
CFA® 2024 Level I Curriculum, Volume 6, Module 3.