- CFA Exams
- CFA Exam: Level I 2021
- Study Session 19. Portfolio Management (2)
- Reading 55. An Introduction to Risk Management
- Subject 4. Measuring and Modifying Risks
CFA Practice Question
The bulk of hedging is represented by ______.
B. risk transfer
C. risk shifting
A. risk avoidance
B. risk transfer
C. risk shifting
Correct Answer: C
Risk shifting is the most common form of risk modification for financial organizations.
User Contributed Comments 2
| User | Comment |
|---|---|
| ibrahim18 | Why are this questions sooo hard? or Is it just me? |
| UcheSam | One just needs to read Risk Metrics in the curriculum to be comfortable with them. |