CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

In general, investments made by ______ are considered to be the most conservative.

A. banks
B. insurance companies
C. mutual funds
Correct Answer: A

User Contributed Comments 11

User Comment
asifrahman what about an open end mutual fund?
viruss In theory :)
johntan1979 "In general..."
jonan203 lol..."most conservative"

like off balance sheet derivatives?
Bududeen most conservative implies low risk investment of funds and high liquidity funds can invest in equity(less conservative) and highly risky
ldfrench "HAHAHAHA" - The years 2007-2008 to the answer of this question.
enetis I imagine they are referring to your generic "S&L"s (saving & loan banks) and not the trading desks of the big IB's
abeeman924 jonan203 with the win
degosan9 The funny thing is based on the mezzanine system of CDOs, they were given AAA ratings by the agencies, so in theory they were "safe". Like as safe as it gets other than US treasuries. We just found out later that once they unwound, the risk wasn't really diversified away
khalifa92 banks have most liquidity needs which in turn forces them to be conservative.
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