- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 2. Portfolio Risk and Return: Part II
- Subject 3. Return-Generating Models
CFA Practice Question
Return-generating models are used to estimate the ______ of a security.
B. beta (systematic risk)
C. standard deviation (total risk)
A. expected return
B. beta (systematic risk)
C. standard deviation (total risk)
Correct Answer: A
They are used to predict the expected return of a security.
User Contributed Comments 1
| User | Comment |
|---|---|
| ibrahim18 | It says return generating models, obviously they help to determine return |