- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 4. Basics of Portfolio Planning and Construction
- Subject 2. Investment Risk and Return Objectives, and Risk Tolerance
CFA Practice Question
Which objective is a relative risk objective?
B. With 90% probability, the portfolio return will be within 5% of NASDAQ Composite.
C. The portfolio will outperform the DJIA by 2% per year.
A. With 90% probability, the portfolio should not lose more than 5% of its capital in any 12-month period.
B. With 90% probability, the portfolio return will be within 5% of NASDAQ Composite.
C. The portfolio will outperform the DJIA by 2% per year.
Correct Answer: B
A is an absolute risk objective and C is a return objective.
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | Good question |