The Budget Line in Portfolio Analysis Shows That

question 94

Multiple Choice

The budget line in portfolio analysis shows that:

• A) the expected return on a portfolio increases as the standard deviation of that return increases.
• B) the expected return on a portfolio increases as the standard deviation of that return decreases.
• C) the expected return on a portfolio is constant.
• D) the standard deviation of a portfolio is constant.
• E) a riskless portfolio will earn a zero return.

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Definitions:

Plate Tectonics

The scientific theory describing the large-scale motion of seven large plates and the movements of a larger number of smaller plates of the Earth's lithosphere.

Biogeographers

Scientists who study the distribution of species and ecosystems in geographic space and through geological time.

Paleobiologist

A scientist who studies ancient life and ecosystems through the examination of fossilized remains and geological context, aiming to understand the evolution of life on Earth.

Marine Invertebrate Fossils

Fossils of animals that lived in the sea and did not possess a vertebral column, important for understanding Earth's history and evolution.