Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 2 of 4
Which of the following statement(s) is (are) true regarding the selection of a portfolio from those that lie on the Capital Allocation Line?
II. More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors.
III. Investors choose the portfolio that maximizes their expected utility.
I. Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors.
II. More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors.
III. Investors choose the portfolio that maximizes their expected utility.
User Contributed Comments 0
You need to log in first to add your comment.
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio
CFA® 2025 Level I Curriculum, Volume 2, Module 1.