Free Questions › CFA › Portfolio Management

Free CFA Portfolio Management Practice Questions & Answers

1,100 exam-style Portfolio Management questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

100% free · No login to start

Question 661

An investor has $500,000, wants to retire in 10 years, and needs the portfolio to grow to $900,000. What is the approximate required annual return?

Select an option first.

Question 662

A pension fund has liabilities growing at 5% per year. To remain fully funded, the minimum required portfolio return is approximately:

Select an option first.

Question 663

An investor saves $10,000 per year for 20 years earning 7% annually. The approximate future value is:

Select an option first.

Question 664

A portfolio that earns the risk-free rate plus 7% for bearing each unit of beta would have a Treynor ratio of:

Select an option first.

Question 665

The primary goal of an Investment Policy Statement is to:

Select an option first.

Get the full CFA question bank — free

Drop your email and we'll send you fresh CFA practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.

Want to save your score and take a full mock exam? Create a free account →

Question 666

Which type of mutual fund invests in both short-term debt and equities to provide both income and some growth?

Select an option first.

Question 667

An investor reports that they felt completely comfortable during the 2020 market crash and didn't change their portfolio. This is evidence of:

Select an option first.

Question 668

Which of the following behavioral biases is most closely associated with investors selling winning stocks too early?

Select an option first.

Question 669

The availability bias in investing refers to:

Select an option first.

Question 670

Illusion of control bias causes investors to:

Select an option first.

Question 671

A fund of funds (FoF) invests in:

Select an option first.

Question 672

Which of the following best describes 'tactical asset allocation'?

Select an option first.

Question 673

Risk transfer as a risk management strategy is illustrated by which of the following?

Select an option first.

Question 674

The concept of 'risk governance' in enterprise risk management includes:

Select an option first.

Question 675

An investor who consistently buys securities simply because they are familiar (domestic stocks, stocks of employers) is demonstrating:

Select an option first.

Question 676

Which of the following scenarios demonstrates status quo bias?

Select an option first.

Question 677

Which of the following is most consistent with a 'goals-based investing' framework?

Select an option first.

Question 678

Which of the following is a non-financial risk that portfolio managers face?

Select an option first.

Question 679

An investor says: 'I don't want any portfolio with a chance of losing money.' What constraint does this represent?

Select an option first.

Question 680

Which of the following mutual fund types is MOST appropriate for an investor seeking maximum capital preservation and near-zero risk?

Select an option first.

Question 681

In portfolio planning, 'capital market expectations' are formed primarily for:

Select an option first.

Question 682

Which of the following approaches can best help an investor overcome loss aversion in portfolio management?

Select an option first.

Question 683

Which of the following is MOST likely to be included as a legal/regulatory constraint for a pension fund's IPS?

Select an option first.

Question 684

The primary purpose of diversification in the context of risk management is to:

Select an option first.

Question 685

Which of the following is most consistent with the 'goals-based' approach to portfolio management?

Select an option first.

Question 686

A portfolio manager who uses options to smooth a portfolio's return distribution and increase its apparent Sharpe ratio is exhibiting:

Select an option first.

Question 687

According to modern portfolio management principles, the optimal investment strategy for most investors is to:

Select an option first.

Question 688

Which of the following statements about active versus passive management is most accurate?

Select an option first.

Question 689

Which statement about hedge fund strategies is most accurate?

Select an option first.

Question 690

The 'mean-variance framework' is limited by which of the following real-world considerations?

Select an option first.

Before you go, can we ask you one thing?

Thank you

Free CFA Portfolio Management Practice Questions & Answers

Privacy Preference

Before you go, can we ask you one thing?

Thank you