CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

For a risk-neutral investor, the risk-aversion coefficient A is ______.
A. positive
B. negative
C. zero
Explanation: Risk-neutral investors maximize return irrespective of risk. They are indifferent to risk. They only analyze return when making investment decisions.

User Contributed Comments 1

User Comment
Mikehuynh Risk aversion coefficient A:

Risk averse: +ve
Risk neutral: 0
Risk taking: -ve
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