- 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 risk measure(s) is (are) used to measure absolute risk?
II. Tracking error
III. Value at risk
I. Variance
II. Tracking error
III. Value at risk
Correct Answer: I and III
Value at Risk (VaR) is a widely used measure of the risk of loss on a specific portfolio of financial assets.
User Contributed Comments 2
| User | Comment |
|---|---|
| johntan1979 | Tracking = track a benchmark = relative risk |
| khalifa92 | absolute; variance, std & VaR relative; track risk, track error. |