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 9 of 16

Elias is a risk-averse investor. David is a less risk-averse investor than Elias. Therefore, ______

A) for the same risk, David requires a higher rate of return than Elias.
B) for the same return, Elias tolerates higher risk than David.
C) for the same risk, Elias requires a lower rate of return than David.
D) for the same return, David tolerates higher risk than Elias.

User Contributed Comments 0

You need to log in first to add your comment.
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

Tamara Schultz

Learning Outcome Statements

explain risk aversion and its implications for portfolio selection

CFA® 2024 Level I Curriculum, Volume 2, Module 1.