- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Portfolio Mathematics
- Subject 3. Shortfall Risk and Roy's Safety-First Criterion
CFA Practice Question
Consider the following statements:
II. Investment choices can also be evaluated by only looking at the downside risk.
III. The risk that a portfolio value falls below an acceptable level during a certain time frame is called shortfall risk.
I. The whole distribution of returns can be summarized by its mean and variance if the distribution is normal.
II. Investment choices can also be evaluated by only looking at the downside risk.
III. The risk that a portfolio value falls below an acceptable level during a certain time frame is called shortfall risk.
Which of the above statements is not true?
Correct Answer: None of the above
All statements are true.
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan | II means the use of safety-first criterion, I think. |
| ajit | Read..Forest...Read |