- CFA Exams
- CFA Exam: Level I 2021
- Study Session 18. Portfolio Management (1)
- Reading 53. Portfolio Risk and Return: Part II
- Subject 2. Pricing of Risk and Computation of Expected Return
CFA Practice Question
Return-generating models are used to estimate the ______ of a security.
B. beta (systematic risk)
C. standard deviation (total risk)
A. expected return
B. beta (systematic risk)
C. standard deviation (total risk)
Correct Answer: A
They are used to predict the expected return of a security.
User Contributed Comments 1
| User | Comment |
|---|---|
| ibrahim18 | It says return generating models, obviously they help to determine return |