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Basic Question 10 of 11

A ______ arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution.

A. head risk
B. tail risk
C. skew risk

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Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

identify financial and non-financial sources of risk and describe how they may interact

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