- 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
Points above the capital allocation line are ______ by investors.
B. achievable but not desirable
C. both desirable and achievable
A. desirable but not achievable
B. achievable but not desirable
C. both desirable and achievable
Correct Answer: A
User Contributed Comments 3
| User | Comment |
|---|---|
| michlam14 | i got this wrong. Because it can be achieved through leverage. However, it is not achieveable given current resources (without borrowing) |
| johntan1979 | michlam14 I think you got the concept wrong. Look at the graph again in the notes. Points to the right of P is leverage. Points above the CAL is NEVER achievable. |
| tricorp | I agree with Johntan |