CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Points above the capital allocation line are ______ by investors.

A. desirable but not achievable
B. achievable but not desirable
C. both desirable and achievable
Correct Answer: A

User Contributed Comments 3

User Comment
michlam14 i got this wrong. Because it can be achieved through leverage. However, it is not achieveable given current resources (without borrowing)
johntan1979 michlam14 I think you got the concept wrong. Look at the graph again in the notes. Points to the right of P is leverage. Points above the CAL is NEVER achievable.
tricorp I agree with Johntan
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