CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

The investment objectives of an investor should be expressed in terms of ______.
A. risk and expected return
B. investment horizon and liquidity concerns
C. legal as well as tax issues
Explanation: In an efficient market, a stock's expected return has built in all the risk factors. Therefore, an investor's task is simply to determine how much risk he or she is willing to take; the markets will determine what the equilibrium rate of return should be at that given level of risk.

User Contributed Comments 1

User Comment
jpducros Investments horizons and liquidity concerns are constraints,not objectives
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