CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

A derivative is most accurately defined as a financial instrument that provides ______.

A. a return based on the return of another asset
B. an adjustment to another asset's level of risk
C. an agreement between two parties to provide something for each other
Correct Answer: A

A return on a derivative is derived from another underlying asset.

User Contributed Comments 3

User Comment
mbowa These answers appear to be dependent on the key words
ibrahim18 Option C is interesting. provide something for each othe
zhefuli C sounds like marriage.
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