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Basic Question 1 of 6
A risk-free asset has to be ______.
II. issued by the government
III. free of inflation
IV. a Treasury bond
I. default-free
II. issued by the government
III. free of inflation
IV. a Treasury bond
User Contributed Comments 5
| User | Comment |
|---|---|
| johntan1979 | I guess II is not correct because government could be ANY government e.g. Greece or Spain. |
| jonan203 | lol, default free, i pray to god that assumption stands over the next few decades. |
| Groyne | Spain has not defaulted |
| Logaritmus | But they will default without quantiative easing. Before EU their bonds have yield >10%. |
| khalifa92 | issuance aint related to risk-free technically 1-3 contributes |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line
CFA® 2024 Level I Curriculum, Volume 2, Module 1.