The Indifference Curve Between Expected Return and the Standard Deviation

question 62

Multiple Choice

The indifference curve between expected return and the standard deviation of return for a risk-averse investor:

• A) is downward-sloping.
• B) is upward-sloping.
• C) is horizontal.
• D) is vertical.
• E) can take any shape.

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management of a corporation, making key decisions and setting policies.

Dividend

A payout of a portion of a company's earnings to its shareholders, usually decided by the board of directors.

Public Corporation

A company whose shares are traded freely on a stock exchange.

Registrars

Entities responsible for maintaining records of shareholders and bondholders for corporations and ensuring compliance with regulatory requirements.