- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 3. Application of Utility Theory to Portfolio Selection
CFA Practice Question
A risk-free asset has to be ______.
II. issued by the government
III. free of inflation
IV. a Treasury bond
I. default-free
II. issued by the government
III. free of inflation
IV. a Treasury bond
Correct Answer: I and III
User Contributed Comments 5
User | Comment |
---|---|
johntan1979 | I guess II is not correct because government could be ANY government e.g. Greece or Spain. |
jonan203 | lol, default free, i pray to god that assumption stands over the next few decades. |
Groyne | Spain has not defaulted |
Logaritmus | But they will default without quantiative easing. Before EU their bonds have yield >10%. |
khalifa92 | issuance aint related to risk-free technically 1-3 contributes |