- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 9. Common Probability Distributions
- Subject 9. Shortfall Risk and Roy's Safety-First Criterion

###
**CFA Practice Question**

Shortfall risk is ______.

A. the risk that minimizes the probability that portfolio return falls below a threshold level

B. the risk that portfolio value will fall below some minimum acceptable level over some time horizon

C. maximum acceptable level of risk

**Explanation:**Shortfall risk is the risk that the portfolio value will fall below some minimum acceptable level over some time horizon.

###
**User Contributed Comments**
0

You need to log in first to add your comment.