- 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
The two most critical elements of an investment objective are ______.
B. risk tolerance and return objective
C. tax concerns and legal (regulatory) factors
A. capital appreciation and total return
B. risk tolerance and return objective
C. tax concerns and legal (regulatory) factors
Correct Answer: B
Risk and return issues are paramount. Other factors may articulate this objective.
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