- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 4. Portfolio Risk, Return and Diversification
CFA Practice Question
The ______ the dispersion around the mean, the ______ the risk.
II. greater; greater
III. lower; lower
IV. lower; greater
I. greater; lower
II. greater; greater
III. lower; lower
IV. lower; greater
Correct Answer: II and III
Risk: uncertainty concerning the outcome of an investment or other situation. It is often defined as the variability of returns from an investment. The greater the range of possible outcomes, the greater the risk.
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