Page 100 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
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LOS 10.m: Define shortfall risk, calculate Session Unit 3:
the safety-first ratio, and select an optimal 10. Common Probability Distributions
portfolio using Roy’s safety-first criterion.
C. SFR = (18 – 4) / 40 is the largest value.
A. SFR = (5 – 0) / 8 is the largest value.
