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CSI IFC Exam - Topic 5 Question 7 Discussion
Actual exam question for
CSI's
IFC exam
Question #: 7
Topic #: 5
[All IFC Questions]
Topic #: 5
What type of fund offers the highest expected risk and the highest expected return in terms of the risk-return trade-off between different types of mutual funds?
Suggested Answer:
C
Specialty funds, due to their focused and often speculative investments, carry the highest expected risk and return among mutual funds. The feedback from the document states:
'The highest risk, highest expected return mutual fund is a specialty fund.'
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