CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The measure of risk in an efficient frontier is ______.

A. specific risk
B. standard deviation of returns
C. beta
Correct Answer: B

User Contributed Comments 3

User Comment
danlan It is total risk not only beta
americade beta is only important to an individual portfolio to be added that would be considered to be added only if it had alpha, it's std dev could be diversified away to a point.
thekobe in the CML aproach is the std dev what matters, in the SML aproach is Beta
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