- CFA Exams
- 2021 CFA Level II Exam
- Study Session 4. Economics
- Reading 10. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 3. A long-term framework for exchange rates
CFA Practice Question
Uncovered interest rate parity assumes a typical investor is:
B. risk neutral.
C. risk seeking.
A. risk averse.
B. risk neutral.
C. risk seeking.
Correct Answer: B
It assumes that most investors are indifferent if different investments offer the same expected return.
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