- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 6. Introduction to Risk Management
- Subject 3. Identification of Risks
CFA Practice Question
Because of interactions between risks, the total risk faced is LIKELY ______ the sum of the risks of the separate components.
B. the same as
C. smaller than
A. bigger than
B. the same as
C. smaller than
Correct Answer: A
The combined risk is almost always non-linear.
User Contributed Comments 1
| User | Comment |
|---|---|
| 8290690 | what about diversification? |