- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 5. Efficient Frontier
CFA Practice Question
The measure of risk in an efficient frontier is ______.
B. standard deviation of returns
C. beta
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 |