- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 2. Risk Aversion and Portfolio Selection
CFA Practice Question
When we say that investors are risk-averse, this means that ______
B. in general, they will invest their savings in a money market portfolio.
C. given a choice between two assets with equal rates of return, they will select the asset with the lower level of risk.
A. when selecting a portfolio, they will select investments that offer a capital guarantee.
B. in general, they will invest their savings in a money market portfolio.
C. given a choice between two assets with equal rates of return, they will select the asset with the lower level of risk.
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| EEEEvia | Why not A? |
| funshining | Risk management first before considering the return of investment. |