In the Mean-Standard Deviation Graph, Which One of the Following

question 46

Multiple Choice

In the mean-standard deviation graph, which one of the following statements is true regarding the indifference curve of a risk-averse investor?

• A)It is the locus of portfolios that have the same expected rates of return and different standard deviations.
• B)It is the locus of portfolios that have the same standard deviations and different rates of return.
• C)It is the locus of portfolios that offer the same utility according to returns and standard deviations.
• D)It connects portfolios that offer increasing utilities according to returns and standard deviations.

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Definitions:

Public Charge

An individual who relies on public resources for support, often used in immigration policy to assess the potential dependency of new entrants.

Estates

Historically, a social or political class; in modern terms, often refers to a substantial area of land or property.

Benjamin Franklin

A Founding Father of the United States, renowned for his contributions to the drafting of the Declaration of Independence and the U.S. Constitution, as well as his inventions and scientific discoveries.

Dividends

The part of corporate profits paid to its shareholders.