Recommendations & StrategiesCâu 68 / 110
An adviser evaluating two portfolios with equal returns should generally prefer the one with which characteristic?
a.The higher standard deviation
b.The higher beta
c.The lower standard deviation
d.The lower correlation to Treasury bills
Giải thích
When two portfolios offer the same expected return, the one with lower standard deviation carries less risk and is therefore more efficient. Rational, risk-averse investors prefer less volatility for the same reward. This risk-adjusted thinking underlies measures like the Sharpe ratio.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Which statement about a 529 college savings plan is accurate?
- An investor holds a portfolio of 30 stocks across many industries. Which risk remains that cannot be diversified away?
- A required minimum distribution (RMD) generally applies to which type of account?
- The present value of a future stream of retirement income needs is most affected by which assumption?
- Which order type guarantees execution but not price?
- A sector rotation strategy involves which of the following?
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với NASAA Series 65 Investment Adviser Law Exam · Quy trình kiểm tra