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Basic Question 4 of 8

Which risk measure(s) is (are) used to measure absolute risk?

I. Variance
II. Tracking error
III. Value at risk
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User Contributed Comments 2

User Comment
johntan1979 Tracking = track a benchmark = relative risk
khalifa92 absolute; variance, std & VaR
relative; track risk, track error.
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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 risk and return objectives and how they maybe developed for a client

explain the difference between the willingness and the ability (capacity) to take risk in analyzing an investor's financial risk tolerance

CFA® 2024 Level I Curriculum, Volume 6, Module 4.