CFA Practice Question

There are 57 practice questions for this study session.

CFA Practice Question

If the investor's expected return exceeds the required return,

A. The asset will appear to be undervalued.
B. The asset will appear to be overvalued.
C. We cannot draw any conclusion since the two returns are not related.
Correct Answer: A

The asset is expected to return more-than-fair compensation for the asset's risk.

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