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Basic Question 16 of 16
Investors' utility curves will be very ______ if they are very risk-averse, indicating they will not tolerate much additional risk to obtain additional returns.
B. flat
C. curvilinear
D. curved
E. convex
A. steep
B. flat
C. curvilinear
D. curved
E. convex
User Contributed Comments 3
| User | Comment |
|---|---|
| zeiad | their utility curves will be very steep |
| DonAnd | Steep utility curve = conservative investor Flat utility curve = less risk averse investor |
| kseeba17 | Think of it in terms of elasticity |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain risk aversion and its implications for portfolio selection
CFA® 2025 Level I Curriculum, Volume 2, Module 1.