- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 2. Risk Aversion and Portfolio Selection
CFA Practice Question
The risk-aversion coefficient in the utility function is higher for ______.
B. more risky investments
C. investments with higher expected returns
A. more risk-averse individuals
B. more risky investments
C. investments with higher expected returns
Correct Answer: A
It is a measure of risk aversion for an individual.
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