- CFA Exams
- CFA Level I Exam
- Study Session 17. Alternative Investments
- Reading 50. Introduction to Alternative Investments
- Subject 6. Risk management overview
CFA Practice Question
What is likely the best measure to assess an alternative investment's downside risk?
B. Value at risk.
C. Beta.
A. Sharpe ratio.
B. Value at risk.
C. Beta.
Correct Answer: B
Other measures include safety-first risk measure and Sortino ratio. Traditional risk and return measures may not provide an adequate picture of characteristics of alternative investments.
User Contributed Comments 2
| User | Comment |
|---|---|
| lancelot96 | Nobody's gonna celebrate the last quiz of the CFA lvl1?? |
| ctate | I was with you @lancelot96 until I realized i haven't done ethics yet. Back to work. |