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Basic Question 0 of 9

A risk-free asset has to be ______.

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
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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

describe repurchase agreements(repos), their uses, and their benefits and risks

CFA® 2025 Level I Curriculum, Volume 4, Module 4.