- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 52. Portfolio Risk and Return: Part I
- Subject 4. Risk Aversion and Portfolio Selection
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 |