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CFA Level I — Portfolio Management: 116 practice questions
116 original CFA Level I questions on Portfolio Management, each with an explanation and its source. Topics: Portfolio Risk and Return: Part I, Portfolio Risk and Return: Part II, Portfolio Management Overview, Planning and Construction, The Behavioral Biases of Individuals, Introduction to Risk Management. One free sample is below; the rest of the questions are available with a paid plan.
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FREE SAMPLE
One Portfolio Management question with explanations
Open a question, choose an answer in your head, then open the explanation.
Q1 Portfolio Risk and Return: Part I（リスクとリターン I）Portfolio Risk and Return: Part I
An investor has a risk-aversion coefficient of A = 4 and uses the utility function U = E(r) − 0.5Aσ², with returns expressed as decimals. Three investments are available. Investment | Expected return | Standard deviation X | 10% | 20% Y | 8% | 12% Z | 6% | 5% The investment the investor most likely prefers is:
- X.
- Y.
- Z.
Show the answer and explanation
Answer: C. C is correct. U(X) = 0.10 − 2(0.04) = 0.0200; U(Y) = 0.08 − 2(0.0144) = 0.0512; U(Z) = 0.06 − 2(0.0025) = 0.0550. Z gives the highest utility.
Sources: CFA Institute, 2026 Level I Topic Outlines (Learning Outcome Statements): Portfolio Management · CFA Institute, 2026 Level I Topic Outlines (Learning Outcome Statements): Portfolio Management
That's the free sample. The rest of the questions are available with a paid plan.
That's the free sample. The rest is available with a plan.
See plansTopics in Portfolio Management
- Portfolio Risk and Return: Part I（リスクとリターン I）Portfolio Risk and Return: Part I 26
- Portfolio Risk and Return: Part II（リスクとリターン II）Portfolio Risk and Return: Part II 28
- Portfolio Management Overview, Planning and Construction（概要・計画・構築）Portfolio Management Overview, Planning and Construction 25
- The Behavioral Biases of Individuals（個人の行動バイアス）The Behavioral Biases of Individuals 19
- Introduction to Risk Management（リスク管理入門）Introduction to Risk Management 18
FAQ
Are these CFA Level 1 Portfolio Management questions free?
The sample question on this page is free to read, with the answer and sources. The full set of 116 Portfolio Management questions is in the paid plans.
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No. Every question is original and written by Sakakikaen Co., Ltd. examplat is not affiliated with or endorsed by the organisation that runs CFA Level I. Check its website for the current syllabus.
OTHER UNITS
CFA Level I practice questions by unit
- Ethical and Professional Standards（倫理・職業行為基準）Ethical and Professional Standards 203
- Quantitative Methods（定量分析）Quantitative Methods 85
- Economics（経済学）Economics 85
- Financial Statement Analysis（財務諸表分析）Financial Statement Analysis 144
- Corporate Issuers（コーポレート・イシュアー）Corporate Issuers 85
- Equity Investments（株式投資）Equity Investments 144
- Fixed Income（債券）Fixed Income 144
- Derivatives（デリバティブ）Derivatives 76
- Alternative Investments（オルタナティブ投資）Alternative Investments 98
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